{"id":1248,"date":"2020-11-10T16:22:00","date_gmt":"2020-11-10T16:22:00","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1248"},"modified":"2020-11-10T16:22:00","modified_gmt":"2020-11-10T16:22:00","slug":"homeownership-key-building-wealth","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/homeownership-key-building-wealth\/","title":{"rendered":"Homeownership Is a Key to Building Wealth"},"content":{"rendered":"
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Homeownership Is a Key to Building Wealth<\/p><\/div>\n

For years, real estate has been considered the best\u00a0investment<\/a>\u00a0you can make. A major reason for this is due to the net worth a household gains through homeownership. In fact, according to the\u00a02019 Survey of Consumer Finance Data<\/em><\/a>\u00a0from the\u00a0Federal Reserve,\u00a0<\/em>for the average homeowner:<\/p>\n

\u201c\u2026a primary home accounts for 90% of the total wealth of a family in the U.S.\u201d<\/em><\/p><\/blockquote>\n

How do homeowners gain wealth?<\/strong><\/h4>\n

Most large purchases, like cars and appliances, depreciate in value as they age, so it\u2019s understandable to question how owning a home can\u00a0increase\u00a0<\/strong>wealth over time. In a simple equation, the\u00a0National Association of Realtors\u00a0<\/em>(NAR)\u00a0explains<\/a>\u00a0how the combination of paying your mortgage and home price appreciation grow overall wealth:<\/p>\n

Principal Payments + Price Appreciation Gains = Housing Wealth Gain<\/strong><\/p>\n

As home values increase and you make payments toward your home loan, you\u2019ll gain wealth through\u00a0equity<\/strong>. The same article from NAR also addresses how wealth gains tend to play out over time:<\/p>\n

\u201cHousing wealth accumulation takes time and is built up by paying off the mortgage debt and by price appreciation. And while home prices can fall, home prices tend to recover and go up over the longer term.\u00a0<\/strong>As of September 2020, the median sales price of existing home sales was $311,800, a 35% gain since July 2006 when prices peaked at $230,000.\u201d<\/em><\/p><\/blockquote>\n

Taking a look at how equity has grown for the typical homeowner, it\u2019s clear to see how real estate is a sound long-term investment. NAR notes:<\/p>\n

\u201cNationally,\u00a0a person who purchased a typical home 30 years ago would have typically gained about $283,000 as of the second quarter of 2020<\/strong>.\u201d (See graph below):<\/em><\/p><\/blockquote>\n

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Equity Gains as of 2020 Q2 on a Typical Single Family Existing Home<\/p><\/div>\n

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Bottom Line<\/strong><\/h3>\n

Whether you\u2019re a current homeowner planning to put your\u00a0equity<\/a>\u00a0toward a new home or have hopes of buying your first home soon, homeownership will always be a great opportunity to build your net worth and overall wealth. Owning a home is truly an investment in your financial future.<\/p>\n<\/div>\n<\/div>\n<\/article>\n

 <\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

For years, real estate has been considered the best\u00a0investment\u00a0you can make. Finish Reading Homeownership Is a Key to Building Wealth<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[129,10,18,27,128,52,176,9,49,42,20,12,24,48,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1248"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1248"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1248\/revisions"}],"predecessor-version":[{"id":1251,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1248\/revisions\/1251"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}