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How Owning a Home Builds Net Worth?

How Owning a Home Builds Net Worth?

The Secret To Financial Freedom

Owning a home is a huge milestone, specifically for first-time homeowners. Additionally, it is a great way to build and increase net worth while gaining financial freedom. According to the US Census, 58.4% of people are living in owner-occupied housing units. So, it is safe to assume that most of the population is tilted towards owning homes and gaining financial freedom.

Research also suggests that homeowners are getting ahead of renters when it comes to net worth. A Report curated by the National Association of Realtors found that “ the net worth of a homeowner was about $300,000 while that of renters was $8,000 in 2021.”

The Benefits Of Home Ownership

There are a lot of benefits associated with owning a home. Naturally, many of them are linked with an increase in the net worth of the owner. Let’s move on and look at some of the most common benefits of home ownership:

$  Appreciation of the value of the house

It isn’t a must for house prices to appreciate and increase. However, historical data points out the fact that home values have seen an appreciation trend. It increases your net worth as well.

Homeownership initiates savings

When you get a house on mortgage, paying down the mortgage every month indicates that you’re building equity. So, home ownership is a forced way to create savings and equity as many people are not good money managers and aren’t great at savings.

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