How Owning A Home Can Contribute To Your Wealth

Dated: October 31 2019

Views: 111

Have you ever considered what your net worth is? By definition, your net worth is the difference between your liabilities (what you owe) and your assets (what you own). Ideally, you should have more assets than liabilities, which creates a positive net worth.

There are great assets to have that will continue to improve your net worth and add to your wealth. Examples include retirement funds, bank accounts, and personal items such as valuable jewelry and collectible cars. According to the U.S. Census Bureau, two of the best assets that will raise your overall wealth are owning a home and having a retirement account. The data from this study showed that a homeowner's net worth is nearly 80 times higher than a renter's.
While many people were hit hard during the recession and the housing crisis that lasted from 2007 to late 2009, those who were able to hold on to their property and pay their mortgages are seeing their homes appreciate in value in recent times. In general, home prices do appreciate over time, adding to your net worth. Of course, you need to factor in your mortgage payments, homeowner's insurance, repairs, and maintenance to keep your asset (your home) in good condition and in the positive net worth arena.
Overall, most financial analysts believe that owning a home contributes to your net worth. Even if you don't currently own a home, it is never too late to consider investing in real estate to boost your net worth and build your wealth.
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Avo Derbalian

Avo Derbalian became Owner/Salesperson of a real estate company in early 2016 after being a Realtor® for a year and a half, providing services all over Bergen County and Passaic County. Since then, ....

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