Owning A Home Builds Your Family's Wealth: Why You Should Buy Not Rent

By
Real Estate Agent with Coldwell Banker Residential Brokerage
https://activerain.com/droplet/4KBF

Owning a home has a significant impact on building your family's wealth. In fact, according to a recent study by Forbes, people who own their homes will have a net worth 45 times greater than those who rent. Just a few months ago, in June, during National Homeownership Month I wrote about how homeowners have a net worth that was 36 times greater than that of renters! The latest statistics shows that the gap between homeowners and renters is projected to be 45 times greater as 2016 rolls around.

 

The chart below clearly shows this increasing gap in wealth between homeowners and renters. And what is even more astounding is that renters are losing ground with a lower net worth projected for 2016 as compard with 2010 and 2013.

 

Net worth of homeowners 45x greater than that of renters

 

Another way to think of it is that homeownership is a form of ‘forced savings’. Every time you pay your mortgage you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth. But make no mistake about it... whether you rent or buy, you are paying a mortgage. The key questions are: which mortgage would you rather pay, yours or your landlord's? Whose net worth would you rather increase, yours or your landlord's?

 

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 Charlotte metro are renter, who would like to make the transition from renter to homeowner to begin building your family's wealth, contact Carolinas Realty Partners. We can help you turn your rent payments into mortgage payments!

 

SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

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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 Residential Brokerage
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 

2007 - 2019 Charlotte Magazine 5-Star Customer Satisfaction Award Winner

 

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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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renting vs buying a home
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Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina owning your own home is a win win.  Even in a falling market there is hope of future equity when the market turns.  With rent there is never a hope of accumulating equity.

Oct 28, 2015 08:17 AM #1
Rainmaker
1,729,393
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

This is a a great post Nina Hollander ....home ownership is the only way to go!

Have a great night!

Oct 28, 2015 08:26 AM #2
Rainmaker
3,276,667
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Rob Thomas ~ thanks, Rob. I'm on a mission to get those renters into homes. So stupid to build someone else's wealth.

Oct 28, 2015 08:29 AM #3
Rainmaker
3,276,667
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

George Souto ~ you make a great point, George.  And with rent you are also always exposed to changes in your housing budget unlike with a fixed mortgage payment.

Oct 28, 2015 08:30 AM #4
Rainer
230,518
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

while these numbers are a bit skewed, in that they reflect net worth,it doesnt tell the entire story .BUTTTT i am with you. and i think the biggest reason to buy in the next 9 to 12 months is rates will skyrocket. so get in now while you can!!

Oct 28, 2015 08:43 AM #5
Rainmaker
3,276,667
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Mike Rock ~ I expect rates to go up but I don't see them skyrocketing, Mike. No question that people should buy sooner rather than later as home prices and rates go up. I was trying to get a message across that homeownership pays off in net worth at the end of the road and renting has nothing to show for itself.

Oct 28, 2015 08:48 AM #6
Rainmaker
583,540
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Accumulating wealth is ONE GOOD reason to own a home, and you've reinforced that with your post.  And like Rob Thomas said, home ownership is the only way to go!

Oct 28, 2015 08:53 AM #7
Rainer
230,518
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

http://money.usnews.com/money/personal-finance/articles/2013/12/13/renting-vs-buying-a-home-which-is-smarter

 

this is a link to "counter" both arguments. as there ARE reasons to either or both have their ups and downs. i bought when i was 21. but that isnt for everyone. just more thoughts 

Oct 28, 2015 09:09 AM #8
Rainmaker
3,276,667
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Pat Starnes ~ lots of reasons to own versus rent, but it does come back to having something to show for all the money you spend on housing at the end of the day.

Oct 28, 2015 10:52 AM #9
Rainmaker
583,540
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Mike Rock - I bought MY first house when I was a mere 17 years old! Dad had to put it in his name because I wasn't of legal age. I've bought and sold countless homes since then. 

Oct 28, 2015 12:30 PM #10
Rainmaker
3,249,421
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Nina

Your post is right on point . . . . owning is the smart thing to do.

Good luck and success.

Lou Ludwig

Oct 28, 2015 01:36 PM #11
Rainmaker
2,294,672
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Nina. The numbers make good sense, owning a home compared to renting is a no brainer. Hopefully more first time home buyers become homeowners going forward.

Oct 28, 2015 06:50 PM #12
Rainmaker
3,276,667
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Lou Ludwig ~ good morning, Lou. As far as I'm concerned anyone who can qualify to buy a home shouldn't even hesitate. Too many benefits to overlook by not doing so.

Oct 28, 2015 07:45 PM #13
Rainmaker
562,051
Women of Westchester Working Together
Women of Westchester Working Together - West Harrison, NY
Women helping Women get ahead

While the numbers are a bit skewed (as they include liquid assets), your point is right on.  Unfortunately, not everyone is financially qualified to own, so it prevents some from entering home ownership. - Debbie

Oct 28, 2015 07:58 PM #14
Rainmaker
3,276,667
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Pat Starnes ~ good morning, Pat... you may just be the youngest home owner I've come across!

Oct 28, 2015 08:29 PM #15
Rainmaker
3,276,667
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Women of Westchester Working Together ~ no question that not everyone can qualify to purchase a home. But those who can, should. There is way more upside potential in the long run, than downside.

Oct 28, 2015 08:30 PM #16
Rainmaker
3,276,667
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Joe Petrowsky ~ good morning, Joe. You put it perfectly... that for someone who qualifies, owning versus renting should be a no-brainer!

Oct 28, 2015 08:31 PM #17
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