Sarasota Homeownership is the Best Way to Build Wealth
In a recent piece created by the New York Times, the article went in to detail on Sarasota Homeownership and Wealth Creation. The housing market has made a significant recovery, not only in sales, but also in the confidence of consumers and experts as an investment.
The article explains:
“ Sarasota Homeownership long has been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”
Many of what the article said is on track with research that the Federal Reserve has also conducted in their Survey of Consumer Finances.
The study found that the average net worth of a homeowner ($194,500) is 36x greater than that of a renter ($5,400).
One reason for this large difference in net worth is the concept of ‘forced savings’ created by having a mortgage payment. The Times explains more below.
“Sarasota Homeownership requires potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.”
“Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment. It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”
“As a means to building wealth, there is no practical substitute for homeownership.”
If you are currently renting but highly considering purchasing, meet with a local real estate agent who can explain the benefits of purchasing over renewing your lease.