It's National Homeownership Month ~ Reason #10 To Own Your Own Home

By
Real Estate Agent with Coldwell Banker Realty

 

It's National Homeownership Month in June and here's Reason #10 why you should own your own home:

 

 

OWNING A HOME BUILDS YOUR FAMILY'S WEALTH

 

 

Reason #10 To Own Your Own Home

 

Here are some stunning statistics from the most recent (September 2014) Federal Reserve Survey of Consumer Finances about how home ownership builds your family's wealth:

 

  • The average American family has a net worth of just over $80,000.

  • Of that $80,000 of net worth, 61+% (about $49,856) is in home equity.

  • A homeowner's net worth is more than 36 times greater  than that of a renter.

  • The average homeowner has a net worth of just under $195,000, while the average net worth of a renter is just under $5,500.

 

And this disparity in net worth is only increasing, as previous studies showed that the average homeowner's net worth was 30 times greater than that of a renter versus the new statistic of 36 times greater, while the average net worth of a homeowner has grown from just under $175,000 to just under $195,000.

 

 

How Homeownership Impacts A Family's Net Worth

 

 

One reason for this growing disparity is the cost of owning a home versus the cost of buying a home and its impact on a family's income. As the graph below shows, renters spend almost 30% of their income on rent, while homeowners spend almost half that. Spend less on housing and you have more disposable income left to save, as well.

 

cost of renting versus buying

 

 

No doubt that for many Americans, their home is one their most important financial assets providing long term net worth and wealth. Investing in your own home as a path to building your family's wealth is a great idea and a great reason to own your own home.

 

 

If you are a renter, who would like to make the transition from renter to homeowner, contact Nina Hollander/Carolinas Realty Partners with Coldwell Banker Residential Brokerage.

We can help you turn your rent payments into mortgage payments!

 

SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

If you are considering purchasing a home in the Charlotte metro area, I would love an opportunity to earn your business, exceed your expectations, and to prove to you that:

 "The Right Broker Makes All The Difference."

 

 

 

Related Articles On National Homeownership Month:

 

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SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

 Nina Hollander, RE/MAX Broker, Realtor

 

 

 

 

 

 

Nina Hollander

Broker, Realtor, MBA, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with Coldwell Banker Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: News You Can Use From Charlotte/Ballantyne/Waxhaw/Fort Mill
Search For All Charlotte Area Homes: www.GreatHomesInCharlotte.com 

Charlotte Magazine 5-Star Customer Satisfaction Award Winner Since 2007

 

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

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Rainmaker
699,027
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Nina, this is just another reason that those stupid reverse mortgage ads irritate me so much.  That should be outlawed.

Jun 28, 2015 10:00 PM #1
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Chris and Dick Dovorany ~ I suppose there is a very limited value in reverse mortgages, but I don't like how they are advertised as if they are the answer to everyone's money issue.

Jun 28, 2015 10:02 PM #2
Rainmaker
178,819
Kim Johnson
Signature Realty Inc. - Coral Springs, FL
Selling South Florida

Good morning Nina! Another great point! Now let's hope the milleniums read these! Make it a marvelous Monday

Jun 28, 2015 10:04 PM #3
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Good morning to you, Kim Johnson. Millenials, yes! But lots of non-Millenials, who i hope will pay attention, as well!

Jun 28, 2015 10:35 PM #4
Rainmaker
4,317,313
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina, another great reason to become a homeowner, and know I love to see how much equity I have in my home!

Jun 28, 2015 10:58 PM #5
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Joan Cox ~ good morning, Joan. At the end of the day, if being 36X wealthier doesn't convince someone to stop renting, I don't know what will!

Jun 28, 2015 11:13 PM #6
Rainmaker
719,075
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Actually Nina, This is the least of your reasons. I have read them all, and like the work you have done.

The networth of the homeowner ONLY comes into play if they sell and become a renter. Otherwise their equity is "dead equity."

But having that equity to fall back on is very valuable, especially if they intend to retire somewhere else.

But in the final analysis, having a free and clear home makes retirement easier, regardless of the "networth" consideration.

Bill Roberts

Jun 29, 2015 12:10 AM #7
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Bill Roberts -- you are correct. It's like paper profits on a stock portfolio. But if/when someone sells, they have money to fall back on if they have equity. A renter might end up with very little and has less disposable income to put into savings if they are paying twice as much to rent as to own.

Jun 29, 2015 12:25 AM #8
Rainmaker
719,075
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Nina, After reading ALL of your posts on this subject, I think that renters can be persuaded to buy by just two reasons: Their monthly costs of the home will remain constant, not subject to rent increases AND they can do what they want with the house (and not have to "ask permission" from the landlord).

If they don't respond to these reasons, they really don't want to buy a home.

Bill Roberts

Jun 29, 2015 12:44 AM #9
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Bill Roberts ~ I would agree that those are probably the two biggest reasons for renters to buy and the rest of the advantages are just an additional by-product.

Jun 29, 2015 01:02 AM #10
Rainmaker
1,888,775
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

If that doesn't help on-the-fence buyers jump, hard to know what will. You've written a great series, Nina.

Jun 29, 2015 01:21 AM #11
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Thanks so much, Lottie Kendall. Tomorrow I'll publish my overview of the series.

Jun 29, 2015 01:24 AM #12
Rainmaker
2,882,256
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

So very true and definitely another great reason to buy a home.  I have never understood why someone would rather rent.

Jun 29, 2015 01:42 AM #13
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Brian England ~ clearly, there will always be people who just can't buy; but for those who can why they keep wasting money on rent is certainly a question that can't always be answered.

Jun 29, 2015 01:45 AM #14
Ambassador
670,724
Rene Fabre
First American Title - Seattle, WA
Marketing in the Digital Age

I'm talking to my kids about this... Nina Hollander ... Two especially are prime candidates. They have good incomes and history and credit. I'm making an impression, but no decisions yet.

Jun 29, 2015 03:37 AM #15
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Rene Fabre ~ I've learned with kids that all you can do is put it out there and then let them do it their way.

Jun 29, 2015 04:10 AM #16
Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina I expected a homeowner's net worth to be higher than a renter's, but I never expected it to be 36 time higher.  WOW

Jun 29, 2015 09:16 AM #17
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Nina.  Great reasons to be a home owner.  Thanks.

Jun 29, 2015 08:47 PM #18
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Conrad Allen ~ good morning, Conrad. For me this is a really important reason to be a homeowner, for sure.

Jun 29, 2015 09:03 PM #19
Rainmaker
3,445,627
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

George Souto ~ good morning, George... and the 36x has jumped from just 30x in a couple of years. I think this differential will keep increasing.

Jun 29, 2015 09:04 PM #20
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