A Minnesota-based real estate pro DIYed his dream smart home. In this final article in a three-part series, he shares money-saving tips you can pass on to your clients.May 30, 2019by Brandon
Put Your Housing Cost to Work for You
There has been a lot written about the benefits of homeownership. One benefit that continues to rise to the top is the added wealth homeowners gain simply by paying their mortgage while their home increases in value over time.
The National Association of Realtors (NAR) recently broke down the equity gained from price appreciation and principal payments in their Economists Outlook Blog. Homeowners who purchased their homes five years ago have already gained almost $80,000 in equity over that time with 80% of the gains coming from price appreciation.
For a homeowner who purchased their home 30 years ago, they have gained nearly $250,000 in equity with 70% coming from price increases. The full results can be seen in the chart below.
According to the Home Price Expectation Survey, a family who purchased a median priced home this January can expect to gain more than $42,000 over the next five years simply from price appreciation alone.
Your home is one of the only investments you can live inside as you pay it off over time. If you are ready to use your housing costs to build wealth, contact a local real estate professional who can help you determine how to make your dream a reality.
Latest Blog Posts
June 10, 2019Bank of America has made several recent moves to reduce the borrowing costs of would-be home buyers who have faced affordability constraints. The bank's latest offer: mortgages with no
Economic growth in Florida has continued to outpace the nation so far this year and has evolved to enhance long-run competitiveness, according to economists at Wells Fargo Securities.The Florida