Ummmm...what?! That stat is crazy! True, there are exceptions to everything, but this is from a study from the Federal Reserve. Yes, THE Federal Reserve. I'd say that's pretty legit! Ready to purchase a house? Contact me, I'd love to assist! www.michelleforemanrealtor.com or firstname.lastname@example.org
A Homeowner’s Net Worth is 45x Greater Than a Renter’s!
Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).In a Forbesarticle, the National Association of Realtors’ (NAR)Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.
The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:
Put Your Housing Cost to Work for You
Simply put, 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.
The latest National Housing Pulse Surveyfrom NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:
“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”
If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, let’s get together to discuss your next steps.
Info taken from http://www.simplifyingthemarket.com/en/2016/07/19/a-homeowners-net-worth-is-45x-greater-than-a-renters/?a=
Author:Michelle Foreman Phone: 214-394-2487 Dated: July 20th 2016 Views: 914 About Michelle: Michelle Foreman isn't one to focus solely on getting the job done but instead on getting the job do...
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"This young lady was awesome to work with. She was the buying agent and I was the listing agent and the communication was awesome. Always returned my phone calls quickly and always responded to text. She really has the clients best interest at heart and really wants to find them the right property!"