Homeownership Wins Over Time
- If you’re questioning whether or not to buy a home this year due to today’s cooling market, consider the long-term financial benefits of homeownership.
- As a homeowner, equity increases your wealth. On average, nationwide, home prices appreciated by 290.2% since 1991.
- Homeownership wins in the long run. If you’re ready to buy a home, let’s connect today.
Do You Believe Homeownership Is Out of Reach? Maybe It Doesn’t Have To Be. 🥳
The 2022 Consumer Insights Report from Mynd says there’s a portion of millennial and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it may not be exactly the way previous generations have done it. The study explains how they’re breaking into the market:
Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. This tactic may be gaining popularity, at least in part, because of the affordability challenges brought about by today’s higher mortgage rates. The report above mentions how many people in this group are considering this approach. It says:
“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”
This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love. Instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.
Brilliant!
They’re getting the best of both worlds. They live where they want, and they still own a home where they can afford it.
Their goal is to generate passive income and diversify their assets. It works like this: in addition to having a rental stream of income, the equity they build in their house will also help grow their net worth over time. If you’re thinking about buying a home as an investment strategy to build your wealth, let’s connect🤩
