San Antonio, Texas ….Home Owners Have Greater Net Worth

Truly a great outline for everyone to read !   This might be an outline that really gives a person the vision on how buying a home is so beneficial to them.

Anyone who reads this…might want to print it out and put it on their refrigerator and also give a copy to a friend!

Trying to make buying a home …A very easy and fun experience!!

Via Terry Driscoll, REALTOR -Mid-Coast Maine Residential Real Estate (Allen & Selig Realty):

Home Owners Have Greater Net Worth

Federal Reserve Board statistics tell use there is a significant difference in average net worth between Home Owners and Renters – - Home Owners have greater net worth than Renters.   How can that be, aren’t home owners saddled with huge debt that is putting them into foreclosure and bankruptcy?  Yes, many are, but that would be caused by a global economic melt-down and wide-spread job losses rather than one person’s decision to buy, or not buy a home.

What the “financial crisis” and recession did was to re-set home values at lower levels which creates Upward Graphopportunities for gains in the future.

Why do Home Owners have greater net worth?  Leverage – - Buying something with a relatively small up-front investment.  Buying a home is a perfect illustration of leverage.  Example:  A Buyer who originally invests $10,000 to purchase a home can immediately “own” an asset worth, say, $150,000.

Balance SheetBalance Sheet Basics:  Net worth equals assets (the things you own) minus liabilities (the things you owe) so as you make each mortgage payment and pay down your principal, your net worth increases.  Additionally, if your asset’s value appreciates, you get an extra bump to your net worth.  But, remember, you have purchased your home as a long term investment and you also have the value and enjoyment of living in it (try that with a mutual fund).  Additionally, the interest you pay on your mortgage is generally an income tax deduction (for now), as are your local property taxes.  Hopefully, during this time, you will also be growing in your career and your income will have corresponding increases.   You will be a responsible homeowner, maintaining your home and perhaps even updating or making improvements or additions which will further enhance the value of your investment and your net worth.

If you rent a home or apartment, you are helping to increase someone else’s net worth! Money down the toilet

•         A rent payment buys you a roof over your head for one month – nothing more

•         Rent payments do not offer any tax advantage

•         Rent payments do nothing to improve YOUR net worth

•         The space you rent is not yours to improve and “make your own”

Click Here to check out an Own vs. Rent Calculator

Home ownership, as a way of life and as an investment, is still extremely desirable, still the American Dream.   When people are asked why they bought the home they live in, it’s hard to find someone who bought because the market was right.  We buy our homes because of marriage or a growing family, to downsize when the kids are grown, because of job transfer, divorce or death of a spouse, or because we are just sick of paying rent - because of our personal circumstances.

Right now, the real estate market offers tremendous opportunity for investing in a home (especially for those who don’t have a home to sell).  We have some of the lowest home prices in years, lots of inventory to choose from, and interest rates continue (for now) to be at all-time lows.   So if your circumstances are telling you NOW is the time to buy, don’t hesitate, call your REALTOR® – Start increasing your Net Worth today!


Cell:  207/449-9696     :    Toll Free:  1-877/277-1010

Caring, Genuine, Personal Service


ALLEN & SELIG REALTY   .   15 VINE STREET    .   BATH, ME   .   207/443-2200

Making your home buying experience FUN & EASY!

Robert Twaron


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