Here are two ways in which property can increase your net worth.
Did you know that owning a home can help build your personal wealth over time? Homeownership is rewarding in so many ways. You have the freedom to personalize your property however you wish, and you gain a sense of community. However, there are two ways in which owning a house can also build your personal wealth:
1. Home equity boosts net worth. It’s a great and easy way to build wealth over time. Everyone needs shelter, so why rent when you can buy and build net worth at the same time? A recent NAR report in 2021 found that the average homeowner’s net worth was $300,000. That of a renter was only $8,000. That means the average homeowner’s net worth was nearly 40 times that of a renter.
“Owning a home is rewarding in so many ways.”
2. Investment property and long-term gain. A recent Bankrate survey found that real estate remains America’s preferred long-term investment in 2022. Here are five reasons why you should also want to invest in rental properties:
- Rental Income. Every month the renter pays you, and that will cover the property expenses.
- Your property increases in value over time. The average home increases by 3.5% annually.
- There are tax benefits. Owning an investment property qualifies you for various tax deductions, such as depreciation, interest, repairs, etc.
- It’s a low-risk investment. You can hedge against inflation by increasing the rent, and you can always sell if you need to.
- Retirement Income. Eventually, the property is paid off, and it provides additional rental income that you will have for the rest of your life.
If you have any questions about home ownership, buying investment properties, or any real estate questions, please don’t hesitate to call or email me. I’d love to connect with you!
