Experts Agree: Homeownership Provides a Path to Long-Term Wealth

<article class="post-54266 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-54266"><span class="entry-date">October 11, 2021</span><div class="entry-header center-block text-center"><h1 class="entry-title">Experts Agree: Homeownership Provides a Path to Long-Term Wealth</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Experts+Agree%3A+Homeownership+Provides+a+Path+to+Long-Term+Wealth&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fexperts-agree-homeownership-provides-a-path-to-long-term-wealth%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="Experts Agree: Homeownership Provides a Path to Long-Term Wealth | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/10/06105011/20211011-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/10/06105011/20211011-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/10/06105011/20211011-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>A recent survey from <a href="https://www.lendingtree.com/home/mortgage/homeownership-renting-survey/"><em>LendingTree.com</em></a> found there are multiple reasons why Americans would choose to purchase a home instead of <a href="https://www.simplifyingthemarket.com/2021/06/18/owning-a-home-has-distinct-financial-benefits-over-renting-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2">renting</a>. Some of the most popular <a href="https://www.simplifyingthemarket.com/2021/05/03/americans-find-the-nonfinancial-benefits-of-homeownership-most-valuable/?a=712984-fa409495d5d70154d03a25e81e9540e2">non-financial</a> reasons given include:<span id="more-45288"></span></p>
<ul>
<li>The flexibility to make the space your own</li>
<li>The pride homeownership offers</li>
<li>The sense of stability</li>
</ul>
<p>In the same survey, 41% of respondents say they’d rather own a home than rent because of the unique way <strong>homeownership </strong><a href="https://www.simplifyingthemarket.com/2021/09/30/as-home-equity-rises-so-does-your-wealth/?a=712984-fa409495d5d70154d03a25e81e9540e2"><strong>builds wealth</strong></a><strong> over time.</strong></p>
<p>And experts agree – the home you own is an important tool for building your net worth. <strong>Here’s what many of those experts have to say about building long-term financial stability through homeownership.</strong></p>
<p>According to the <a href="https://www.nar.realtor/blogs/economists-outlook/metro-area-wealth-gains-as-of-2021-q2-typical-gain-of-349000-over-30-years"><em>National Association of Realtors</em></a> (NAR):</p>
<blockquote>
<p><em>“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 <strong>accumulated housing wealth of $349,258</strong>, . . .</em>”</p>
</blockquote>
<p>Mark Fleming, Chief Economist at <a href="https://blog.firstam.com/economics/reconomy-podcast-should-you-rent-or-buy"><em>First American</em></a>, points out that<strong> a home is truly a one-of-a-kind asset. </strong>It’s the only asset that’s both an investment and a place for you to call your own.</p>
<blockquote>
<p><em>“The major financial advantage of homeownership is the <strong>accumulation of equity in the form of house price appreciation. </strong>. . . We won’t always have 17% house price appreciation, but we have to take into account <strong>the fact that the shelter that you’re owning is an equity-generating or wealth-generating asset.</strong>”</em></p>
</blockquote>
<p>Homeowners can leverage the wealth they generate in several ways throughout their life. Tapping into accumulated equity has long been used to pay for the cost of an education, to start a business, or to fund various other expenses. The <a href="https://www.jchs.harvard.edu/blog/learning-history-homeownership-rate"><em>Joint Center of Housing Studies</em></a> at <em>Harvard </em>points out:</p>
<blockquote>
<p><em>“. . . by paying down mortgage principal each month and participating in the long-term appreciation of home values, a family can build wealth that can be <strong>used for retirement or other needs, including helping the next generation.</strong>”</em></p>
</blockquote>
<h3><strong>Bottom Line</strong></h3>
<p>With home prices expected to continue to appreciate in coming years, homebuyers have an opportunity to start the long-term wealth-building process right now. Let’s connect today if you’re ready to begin your journey on the path to becoming a homeowner.</p>
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