Why Home Ownership?

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Wealth vs Income

Money earned to pay expenses

The difference between assets (cash, savings, a home, a business) and debt.

• While mortgage payments remain the same, market prices tend to rise over time, creating valuable home equity that increases a family's net worth.
• It is forced savings - as a mortgage is paid month-by-month, equity is built at the same time
• As equity builds in a home, a homeowner can borrow against the equity for protection against a crisis, unexpected expenses, or dips in income.
• Homes may be passed down to secure future generations
• Homes increase in value over time (unlike a new car that loses 15% to 20% when you drive off the lot and continues to lose value).
• Homes may be used as a guarantee to secure other funding
• Homes can be sold even if there is still a mortgage due.
• Renters pay the mortgages of the property owner, thereby building the wealth of others at their own expense.

The longer you own a home, the more equity is built (the difference between the purchase price and/or the value of a home and the difference between the original mortgage and the balance owed).

A homeowner can sell a home as an asset. A renter cannot sell property rented from and owned by another person.

A child born into a wealthy family is six times more likely to become a wealthy adult and homeownership has long been a central part of this equation.

In 2015, the average net worth of a homeowner was $195,400 compared to $5,400 for a renter.

You can't afford NOT to buy a home. Prioritize the essentials. 1/3 of consumer purchases is on clothing, electronics, cars and jewelry which depreciate leaving the sales floor. Pay yourself or pay your Landlord!

Your loan payment to OWN your home is between $275 to $550 per month.