Is Homeownership The Best Way to Build Wealth?

A definitive “YES” says to a New York Times  recent article. According to the article, home ownership has declined from nearly 70% in 2004 to 64,3% recently and renters have increased by nearly 25%.

homeHome ownership is an excellent way to build wealth even though recently the economic downturn caused a major decline in home prices.  The reason is that homeowners are forced into a saving plan, first for a downpayment and then monthly as they make their mortgage payments and reduce their debt on their home.  Renters have to make monthly payments of rent also but it is not reducing the amount of debt they have.  If a renter was to put away money each month or purchase stocks in an equivalent rate to the homeowner paying down his mortgage then they could accumulate wealth also.  However, historically the renter does not save money and spends the disposable income he has available to him with no forced savings plan.

This does not take into account that many people in this country lost a great deal of money on their homes during the recent recession.  However, new guidelines have been put in place that mortgage companies must adhere to so they can no longer engage in the devious practices that caused the housing bubble in the first place.

Because of the forced and built in saving plan, home ownership can definitely build wealth for most Americans.

In Naples we can offer a wonderful lifestyle as well as a new home and the chance for you to enjoy a good return on your investment.  Please contact me so that we can discuss what you are looking for and I can help you find the perfect home that will increase in value.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a chance to build your wealth!

 

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