A Homeowner’s Net Worth Is 40x Greater Than a Renter’s

A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM

One of the best ways to build your family’s financial future is through homeownership. Recent data from the Federal Reserve indicates the net worth of a homeowner is actually over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a home, especially when they’re so affordable in today’s market.

Every three years the Survey of Consumer Finances shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting just keeps getting wider over time, making homeownership more and more desirable for those who are ready.A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM

Owning a home is a great way to build family wealth.

For many families, homeownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your home (See chart below):A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCMThe impact of home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the seventh year in a row. According to this year’s survey, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds.

Today, there are great opportunities available for those planning to buy a home. The housing market has made a full recovery, and all-time low interest rates are giving homebuyers a big boost in purchasing power. If you’re ready, buying a home this fall can set you up to increase your net worth and create a safety net for your family’s future.

Bottom Line

To learn how you can use your monthly housing cost to build your family’s net worth, let’s connect so you have a trusted professional to guide you through the homebuying process.

Posted on October 12, 2020 at 6:51 pm
Annie Hyatt | Category: Uncategorized | Tagged , , , , , ,

Are You Ready to Buy in this Seller’s Market?

Are you hearing stories of crazy escalating prices for homes in the Seattle area?  Is the tax reform law scaring you from fulfilling your home-owning dreams? (See How Do the Tax Reforms Affect You? for more information).

I get it. Those are both things that would give me pause in jumping in the game too, but I also know that owning real estate as a long term investment is historically a good choice…  Ugh! that is such a boring reason to buy a home.  While true, it is still an unsexy reason.

I think buying allows you to decorate however pleases you and not have to worry if the landlord will allow it.  Want an orange pantry door?  You get to have an orange pantry door!  (Hot hubby was not thrilled with that choice, but put up with it for a few years.)

Do you have pets?  They LOVE yards!  And if you buy a condo, no pet deposits needed because you are the boss, my friend.

So are you ready to find that house with the outdoor porch where you can picture yourself reading on warm, summer afternoons?  Here are 3 things to help you be prepared for the competitive Seattle buying market.

  1. Get yourself pre-approved by a reputable lender–  (Ask your real estate broker for referrals.) Do this before you start seriously looking. You need to know exactly what your budget is so you know what types of homes and where you can search.  It is a bummer when you think you can afford the most rockin’ house ever and then find out later from a lender that it is not in the cards.  Also, having an approval makes your offer stronger.
  2.  Find a Real Estate agent you trust- Since you will be spending a lot of time with your agent, find one that you feel comfortable with and who will treat you like you are their favorite client ever. In the market we are having here in Seattle, you need someone who has a tool box full of ideas to help you win the house. Ask them how they guide their buying clients when it comes to multiple offers. They should have many ideas (not all financially comfortable for the buyer) that you can use to make the strongest offer.
  3. Know that this may take a while– With the low inventory, there are not enough houses to go around all at the same time. For some buyers, it may take a week and others a year (and others any amount of time in between there :)). If you are prepared that it could take a while, this process may not become frustrating when it does, and if you find your house right away- BONUS!

Don’t let your orange pantry door be an idea… make it a reality and go find your new home!

 

Posted on April 4, 2018 at 11:03 pm
Annie Hyatt | Category: Buyers in Seattle, Buying a house, Buying Houses, Uncategorized | Tagged , , , ,