How Owning A Home Can Contribute To Your Wealth

Dated: October 31 2019

Views: 82

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.
Blog author image

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, ....

Latest Blog Posts

Top 10 Winter Home Maintenance Tips

1. Check Your Gutters and DrainageWith winter comes increased rainfall, so you want to be ready. While cleaning out the gutter isn’t a fun job, it can save you money in the long run. Well

Read More

Daylight Savings Ends Sunday

Stay up late and FALL BACK into bed! Sleep in, get a head start on errands, or catch up on your most binge-worthy

Read More

A Look Into The Markets

Fiscal Stimulus Fiscal stimulus refers to policy measures undertaken by a government that typically reduce taxes or regulations and increase government spending in order

Read More

How To Sell Homes With Smart Technology

  Convenience is key, and homebuyers love a promise that daily mundane tasks will be made easier. You know that buyers like the idea of smart technology in their homes and

Read More