Some people shy away from buying a home while we are in this hot sellers’ market.
I don’t blame them. The competition for affordable properties is intense, and home values have increased substantially.
After all, you can lease a brand new, modern apartment for a similar monthly payment and enjoy life without maintenance responsibilities and the burden of large debt.
The Incredible Wealth Advantage of Home Ownership
Ownership is the safest and fastest way for most Americans to acquire wealth. Research by the Federal Reserve (pdf) indicates that the net worth of homeowners is 40 times greater than that of renters.
This wealth gap has increased over the past 10 years (see chart below).
Whose Mortgage Are You Paying?
Whether you rent or own, you pay a mortgage.
If you rent, you pay the landlords mortgage. If you own, you build equity (which equals wealth) through a combination of principal payoff and property appreciation.
Help Your Children Create Wealth
Owning a home is the best way to build family wealth. You should seriously consider helping your college age children buy their first home.
This will set them up for life.
Instead of tens of thousands in student debt your children would enjoy a solid equity balance in their own property by the time they graduate.
A Real-Life Success Story
A couple of years ago I wrote about the son of a friend. At 28 years old he cleared $57,000 selling his first home.
He purchased it with a forgivable down payment loan right after college. He lived in the house with roommates who paid him rent, and sold it for a huge profit after only 5 years.
With zero cash invested he used the gain to purchase a larger home in the suburbs and has no student debt.
Fall and Elections Create the Perfect Opportunity to Buy
Don’t let rising home values and low inventory scare you from buying!
Interest rates have never been lower. It’s possible to lock in a long-term mortgage at under 3% per year and start building wealth NOW.
The next few months will keep many buyers on the sidelines. This is the perfect opportunity for you and your son or daughter to get into a property with less competition while taking advantage of super low interest rates.
Call me … I can help you find the perfect property that will appreciate and refer you to lenders who can finance the purchase with little or no down payment.
Click here to schedule your FREE In-Person or Virtual Consultation. Call or Text me at (614) 975-9650.
Susanne Novak has been a Realtor since 2007. She is the broker and owner of RE/MAX 24/7 in the Dublin Historic District. Susanne typically helps 50-60 families each year with their real estate needs. She's your trusted advisor when you search for your dream home, and a skilled negotiator when she lists your property to get top dollar when you sell.