Building equity is one of the most important perks of owning a home.
Are you a renter? With the continuous increase in rental prices, what’s stopping you from buying your own home? As a Realtor, I want to talk about a few things worth considering if you’re considering owning a home.
If you’re a seller who wants to sell your home, you’ve likely built great equity over the past few years, which is a good thing. However, if you’re a renter still having second thoughts about whether to buy a home or if renting still makes sense for you, I have some insights that might make you change your mind.
Reflecting on last year’s market trends, home prices increased, which kept some potential buyers on the sideline. At the same time, the rent rate also went up. This dual price rise prompts us to ask: What are the financial implications for you as a renter versus a homeowner?
Financial benefits of homeownership. When you buy a home, you’re essentially paying yourself. In contrast, when you rent, you give your hard-earned money to your landlord without building any equity. That’s where it all makes a difference to you financially.
Renters vs. homeowners. According to data from the Fed, in 2010, renters had a net worth of approximately $5,400, while homeowners enjoyed a net worth of around $187,000. Fast-forward to the end of 2022, and renters had increased their wealth to $10,400, but homeowners had seen their net worth soar to $396,200.
These statistics are not just numbers; they show a big wealth gap, highlighting the long-term benefits of homeownership. Building wealth isn’t just about accumulating dollars but investing in a stable future through owning a property.
So, if in 2025 you think you don’t want to be a renter anymore and you want to discuss what you can afford and where you can go, give me a call at (607) 795-2904 or message me at vickischamel@kw.com. The season is just kicking off, and I look forward to seeing all of you.
