According to Selma Hepp, Economist at CoreLogic, “For many households, home equity is the only source of wealth creation. As a result, recent record gains in equity and record declines in loan-to-value ratios will provide many owners with a financial buffer in case economic conditions worsen. In addition, record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas.” Note: the Quad Cities have recently ranked the 4th most affordable market in the country.
The net worth of a homeowner is 40 times greater than that of a renter. So when you compare homeownership to renting, it’s a huge differentiator for peoples’ long-term wealth gain.
Additional benefits of homeownership:
- Security and stability
- Personalization and home improvement
- Health benefits
- Community/Neighborhood involvement
So if you are asking yourself, “should I still buy a home this year?” – It’s important to factor the long-term benefits of homeownership into your decision.
If you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how you gain equity and wealth as home values grow with time. Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.
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