Hey family, do you want to know how to invest in your financial future? Perfect!
Many people search for different investments to build their wealth. Some invest in the stock market; others invest in bonds and cryptocurrency, but what many forget is that owning a home is an excellent investment to build wealth.
How can owning a home be a great investment?
Two components play a role in building wealth through homeownership: mortgage payment and price appreciation. As homeowners pay off their mortgage, the amount of money they owe decreases, and they slowly develop their household’s wealth.
Now, price appreciation is the increase in the home value. So, over the years, the value of the home increases. These two: mortgage payments and price appreciation, combine to build what we call equity.
How does the home value increase? Shouldn’t it decrease over the years?
It makes sense to think that the value of a home would decrease over time. It happened to cars, appliances, and many other things but not a home. It’s a simple economic concept that can answer this question. When people demand houses, but there are not many houses to purchase, the value of homes increases. That is very important to know as a homeowner.
But what about times when the home value decreases? What then?
Don’t worry; we got you covered! Sometimes home value decreases. It could be because of a financial crisis such as the Great Recession or little demand for homes. But one thing we can count on is that the home value always recovers!
Building wealth through homeownership is a long-term investment, so you have to be patient. But it is worth-while. The benefits of owning a home are endless.
In return for being a homeowner, you provide your family with stability, and you get a greater tax return and freedom to build the home of your dreams!
Where can I start?
Start with us! Treasure Property Group cares about your financial future. We want you to invest in your future, so TRUST us with what you TREASURE! We value you and your family!
Ready or not, we are here to help you and find you a forever home! Take the first step and reach out to us!
Bhutta, Neil et. al. 2019. “Changes in U.S. Family Finances from 2016 to 2019: Evidence from the Survey of Consumer Finances.” Federal Reserve Bulletin.