No. I am not looking for a number. I just want you to think about the answer.
Is it as high as you would like it to be? Is it too low, or even worse, dangerously low?
If it is as high as you think it should be, I will bet that you are a home owner. And if it is dangerously low, you probably rent your home.
You see, according to a survey conducted by the Federal Reserve, someone who owns their own home is extremely likely to have a much higher net worth than a renter. How much higher? The latest survey , which covers the period from 2010 – 2013, says that a home owner’s net worth is 36 times higher than a renters. And the next survey is expected to say that the number is 45 times higher.
So – if you are a renter, and I am assuming that you want to increase your net worth, you should buy your own home. Can you agree with that? And if you are already a homeowner, you are pointed in the proper direction already.
So why is a home owner’s net worth so much more? Here are a few reasons.
When you own, you are paying a mortgage. Eventually you will pay off the mortgage (hopefully) and you will not be making that payment any more.
When you rent you are paying a mortgage. You are paying the landlord’s mortgage.
When you own, your mortgage interest and real estate taxes are currently deductable from your taxes.
When you rent, you have a pile of cancelled checks at the end of the year.
When you own, historically, the value of the home rises.
When you rent, historically, the monthly rental rises.
Many renters are under the belief that they cannot get a mortgage. They may also think they do not have the necessary down payment. The truth is, many more people can get a mortgage and they don’t need as much cash as they think they do. Call us, Bunny and Art Reiman at 732-616-6226 – we can help. Or visit our web sites www.55PlusInOcean.com and www.55PlusinMonmouth.com . You can search for your new home from there.