Family Wealth: Here's How to Build It
Unless you are living with family or a friend rent-free, you are paying a mortgage. You are paying a mortgage whether you buy or rent, the difference when you rent is that you are paying the landlord's mortgage rather than your own. When you buy your own home, your monthly housing costs build your family's wealth.
Each monthly payment contributes to paying off the debt you took on to purchase your new home. With each coming month, you own more of your home. With time, your home value increases and so does your home equity.
Pulsenomics' recent survey showed that home prices are predicted to increase by 5.8% in the next year. It is also expected for home values to appreciate by an average of 3% each year for the next 5 years.
Here's an example:
A family buys a home in February and closes with a price of 250,000. Their home appreciates in value over the next 5 years. In 5 years the family would increase their home equity by about $39,520.
Home equity is often a large portion of a family's net worth. If you plan on entering the housing market in 2019, we highly encourage it. Meet with the PorchLight team, whether its your first home or your sixth.