Homeownership Grows Your Net Worth
Consider for a moment where you envision yourself in the coming years. Perhaps you’re pondering your career, financial aspirations, seeking stability, or imminent objectives. Does owning a house fit into this picture? If so, it’s essential to recognize the myriad financial advantages of owning a home, and how homeownership grows your net worth.
A compelling reason to purchase a house is its potential to enhance wealth and ensure financial security. This is attributed to the fact that the majority of homes appreciate in value, subsequently boosting your overall assets. Currently, home values are on an upward trajectory. As Zillow states:
“The total value of the U.S. housing market – the sum of Zillow’s estimated value for every U.S. home – is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.”
In essence, owning a home is a powerful asset accumulation instrument. With national home values trending upwards, it’s worth contemplating if homeownership aligns with your aspirations.
Here’s an insight into the tangible impact of homeownership on one’s financial status.
The Surge in Household Net Worth
Statistics indicate that even though the top 1% experienced the most significant surge in net worth, individuals from all tax categories have witnessed wealth augmentation in recent years (refer to the graph below):
A significant factor in this growth is the escalating value of their residences.
Achieving Financial Success via Homeownership
The pronounced disparity in net worth between homeowners and renters underscores the pivotal role of homeownership in wealth accumulation. Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), remarks:
“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”
What’s the underlying reason? The accumulation of home equity. Home equity is the difference between your home’s value and your mortgage balance. For a vast majority, this constitutes the most significant chunk of their net worth. The data from First American substantiates this claim (refer to the graph below):
The blue segment in each bar symbolizes housing’s contribution to net worth, evidently surpassing other investments like stocks, gold, and digital currencies. It’s evident that homeownership is a predominant factor in wealth generation across various income brackets.
Bottom Line
Homeownership grows your net worth. It’s one of the paramount perks of owning your own home. Reach out to Countryside Homes NJ and RE/MAX Select, and let’s engage and explore how you can embark on the journey of homeownership and start growing your net worth today.
Client Testimonials for Countryside Homes NJ
At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.
Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.
As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!
From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!
Contact a Real Estate Agent
Heather Montalbano
Real Estate Sales Associate
Cell: 973-796-4947
RE/MAX Select
Office: 973-625-0450
Keith LaBrunda
Real Estate Sales Associate
Cell: 973-476-4182
RE/MAX Select
Office: 973-625-0450
RE/MAX Select - Rockaway, NJ
Featured Listings
Countryside Homes NJ
Preferred Partners
Countryside Homes NJ is proud to recommend Ryan Sturzebecker and his company, Alliance Home Inspections, as a preferred partner. Ryan, the owner and principal inspector, is dedicated to delivering top-tier customer service with a focus on helping clients understand the
For over 20 years, Mark Scocco has been involved in multiple facets of real estate and lending. It’s this diverse experience that you can rely on to help guide you through your mortgage transaction from qualification to closing. Mark will
Denise Damato-Sulzer is a seasoned insurance professional with Select Advantage Insurance Agency, a leading provider of comprehensive insurance solutions. With years of experience in the industry, Denise has honed her expertise in a wide range of insurance products, including home,
Colleen Waid, owner of Dazzle by Design Home Staging, believes in the power of good design without the necessity of a hefty price tag. She specializes in creating elegant and stylish rooms by rearranging existing furniture, emphasizing focal points, and
Bill Crowell is a dedicated and experienced account executive at Land Quest Title, a leading title insurance and settlement services company. With a strong background in real estate and finance, Bill has been instrumental in the company’s growth and success
Bruce Oliver is a highly skilled mortgage professional with Bond Street Mortgage, a leading mortgage lender known for its exceptional service and competitive rates. With a strong background in finance and real estate, Bruce has become an expert in various