If we consider the most basic of all needs, food and shelter come to mind. Does that mean you have to own your shelter? Of course, the answer is no but when you do, the long-term effects could be a boost to your financial bottom line.
“…an online portal that provides access to the growing body of research on how housing matters to other pivotal drivers of individual and community success.”
A few years ago, their data collection produced an article called The First Rung on the Ladder to Economic Opportunity Is Housing where they stated the following:
“Without affordable rents, families are unable to save for homeownership. And without new homebuyers, current owners are unable to sell and access their home equity. The housing ecosystem only works when all of the pieces work.”
The National Association of Realtors backed this up earlier this year saying
“housing wealth making up 85 percent of wealth”
Here is their data in an infographic:
This data shows that a difference in mortgage principal payments and home price appreciation will deliver over $70,000 to a household in 30 years. So far, the story for homeownership wins but be certain to view this with an understanding eye.
Yes, it feels good to say a home is “mine” but is it really if you didn’t pay cash? Yes, it feels great to call a landlord instead of your bank or credit card balance when something breaks but are you saving what would have been spent? How anyone builds for their own financial success preparing for the “golden yeas” is always unique to all of us.
Be sure you consider the long- and short-term impact of homeownership. Large financial decisions such as purchasing real estate can have a huge negative impact on a budget when considering all the aspects and costs of owning a home. Arguably, most licensed folks in real estate only consider their commissions or incomes instead of your hard-earned money and your bank account when there is this much on the line.
Bottom Line: it’s your money. Where you go from here should be with a true professional who’s looking out for the financial as well as emotional impact of a need so great as shelter. Do you have a plan and are you on it? Are you working with someone who looks out for you like this? #callme