People often see home ownership as an investment. In fact, it’s one of the biggest milestones in the traditional American Dream. Having a home means having a place that you can call your own. Plus, having property that you can pass down from generation to generation means equity for your kin.
In many cases, it’s a great investment. However, there are many people, including the 52% of people ages 35-44 who believe it’d be more beneficial to invest in the stock market than into real estate.
Home ownership Often Means Greater Net Worth
There is large possibility that you are worth far more than someone who rents if you own a home. According to the Survey of Consume Finances from the Federal Reserve, homeowners have a 40x greater net worth than that of renters.
So yes, owning a home is a smart financial move in many ways.
In 2019, homeowners had a median net worth of $255,000. That same year, renters had a median net worth of $6,300.
Of course, to own a home, you must be financially responsible, as you have to qualify for a mortgage, make a downpayment, and budget for insurance and taxes.
Overall, buying a home is truly only a smart choice if your finances are in good shape.
When Buying a Home Is A Bad Idea
While there are many benefits to home ownership, there can be devastating effects if you are not ready financially. You might drain your savings or stretch your budget to purchase a home, only to lose it due to a lost job or other unforeseen circumstances.
Losing a home can impact your future budget and credit.
Most all experts agree that it is important to find a home within your budget. If you share an income with a significant other, you might consider getting a mortgage that is still affordable with a single income.
If someone happens to lose their job, you’ll still be able to keep your house.
What Should You Do?
If you’re looking to build wealth over time, home ownership is a wonderful way to do so. Of course, if you’re planning on buying a home to sell your house in Phoenix in the future, it might be hard to turn a profit if the housing market cools.
Plus, selling a home is often a long and arduous process with tons of fees. You might not have the resources available to go through with a home sale. The same thing goes if you own a home currently and are wondering whether you should hold onto it.
In the case the investment isn’t worth it for you anymore, you might consider selling your home to EZ Max Offer. We buy homes in “as-is” condition, giving home sellers the best prices with cash advances so that they may take their next steps in life.
You never have to worry about fees or lengthy processes when you work with EZ Max Offer. Get in touch with us today to learn more about what we can do for you!