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How Owning a Home Builds Your Net Worth
Owning a home is a major financial milestone and an achievement to take pride in. One major reason: the equity you build as a homeowner gives your net worth a big boost. And with high inflation right now, the link between owning your home and building your wealth is especially important.
If you’re looking to increase your financial security, here’s why now could be a good time to start on your journey toward homeownership.
Owning a Home Is a Key Ingredient for Financial Success
A report from the National Association of Realtors (NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters. It finds:
“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”
To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter’s. This difference shows owning a home is a key step in achieving financial success.
Equity Gains Can Substantially Boost a Homeowner’s Net Worth
The net worth gap between owners and renters exists in large part because homeowners build equity. When you own a home, your equity grows as your home appreciates in value and you make your mortgage payments each month. As a renter, you don’t have that same opportunity. A recent article from CNET explains:
“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home . . . When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”
But on top of that, your home equity grows even more as your home appreciates in value over time. That has a major impact on the wealth you build, as a recent article from Bankrate notes:
“Building home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down.”
In other words, when you own your home, you have the advantage of your mortgage payment acting as a contribution to a forced savings account that grows in value as your home does. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.
Bottom Line
Owning a home is an important part of building your net worth. If you’re ready to start on your journey to homeownership, let’s connect today.
“Thank you for guiding us through the process of selling our house…”
Tony and team,
Thank you for guiding us through the process of selling our house with just the right buyer at just the right time at just the right price.
Janice and Jim Strode
Sold in Morning Meadows – June 2022
“Tony’s experience and network on English Hill/the Eastside really made a difference!”
Tony and team are rockstars! When my husband and I moved from out of state with our new baby we contacted Tony to begin our home search. Despite our rush to buy (and anxiety in this crazy housing market), Tony was honest about why certain homes might not be the best fit. Tony’s experience and network on English Hill/the Eastside really made a difference! Tony was able to get us into a home in our first choice neighborhood. Tony’s team ensured the transaction went smoothly and we are loving our new home!! I will recommend Tony & Team to friends and family. Thanks, Tony!
Jennifer Duren and Andrew Sexton
Purchased in Glenterra – May 2022
“Supported us in a way that made us feel like we were his only clients”
We worked with Tony and his excellent team for a sale and a purchase; both of which went extremely well. When we began thinking about moving within the English Hill neighborhood, we reached out to Tony and he was very supportive, but without any pressure. He offered encouraging solutions during the buying process when the market seemed nearly impossible. And when we sold our home, he not only gave us tips to maximize our sale price, but supported us in a way that made us feel like we were his only clients. He has a well thought-out process and organized approach to buying and selling your home, and we just could not have imagined doing this without Tony Meier & Team! We highly recommend giving Tony a call to anyone looking for a trustworthy, hardworking, and reliable agent.
Joe and Jody Shmait
Sold in Hollymor II – May 2022
Purchased in Coventry – April 2022
“No matter what issue we encountered, Tony had a timely solution…”
We had planned on putting our house on the market in May, as we were moving to Eastern Washington. We recognized that the housing market was unusual and wanted a realtor who knew the market, and specifically, English Hill. We met with Tony and his wife, and during that meeting, Tony gave us all of the information we needed to decide to list our house as soon as possible instead of waiting until May. He presented us with a packet full of statistics and market projections, and answered all of our questions. He and Wendi walked through our home and gave us pointers on what to do to make the house ready. They had a list of contractors for us to use. No matter what issue we encountered, Tony had a timely solution. We literally met with him on February 10th and put our house on the market on March 10th. Tony knew how to price our home to sell well and quickly. His way of helping us sell our home is time-tested and it works! His expertise benefitted us immensely, and enabled us to buy another beautiful home on the other side of the mountains. We couldn’t be more thrilled to have used Tony and his team!
George and Kellie Anderson
Sold in Coventry – April 2022
“His expert knowledge of the market and analysis of optimal timing led to a tremendous result for us!”
We listed our Redmond home with Tony in early March. We followed his advice to list earlier than we had planned. His expert knowledge of the market and analysis of optimal timing led to a tremendous result for us! His professional photography and video drove 50 showings in 5 days and 8 offers. The result was more than $800K over asking. Tony is professional, personable, hardworking and very honest with how he dealt with us. He handled all the details, and it was a real pleasure to work with Tony and his Team.
Tim and Jackie Duffy
Sold in Langtree Estates – April 2022
“We were far from being an ideal client, but Tony and his team stuck with us all the way…”
Tony and his team were, in a word, EXCEPTIONAL. Other adjectives include professional, helpful, informative, patient, friendly, and responsive. I could go on… We had a two-year plan (that ended up taking three) for getting our house ready to market. We contacted Tony and he worked with us over those years with solid advice, tips, and opinions to guide us through the process and fetch top dollar for our home. His team out-performed with all aspects, from prepping the house to marketing and showing, offer reviews and negotiation, right down to the final closing. I think we were far from being an ideal client, but Tony and his team stuck with us all the way, taking everything in stride. There is no doubt that, if I ever needed to sell (or buy) a home again in the area, Tony is the only person I would call.
Michael Salamone and Wenting Cai
Sold in Mount Clare Estates – April 2022
He is very easy to work with. I’d highly recommend!
Tony helped us purchase our home 7 years ago and sell it this year. He is very easy to work with. I’d highly recommend! Thanks Tony!
Brian and Shannon Taylor
Sold in Duvall – April 2022
Here’s Why It’s Still a Sellers’ Market [INFOGRAPHIC]
Some Highlights
- While buyer demand has moderated and housing supply has grown in recent months, it’s still a sellers’ market because inventory is low.
- The latest data shows sellers continue to benefit from serious buyers and competitive offers. In July, the average home received 2.8 offers and 39% sold over the asking price.
- You haven’t missed your opportunity to sell. Let’s connect to start the process today.
