One of the top questions that we get from homebuyers every day is “why should I be a home buyer?” and this is an understandable question to ask since many people are content to continue renting while they wait for the possibility of a market crash before they purchase a home.
At the Fred Sed Group, and the Ben Kinney team, our goal is to help as many people as possible accomplish the dream of homeownership.
Our desire to help people become homeowners isn’t driven by our ability to earn a commission on each home that we sell, or for our agents to enrich themselves. We sincerely want to help people become homeowners because becoming a homeowner also helps to boost an individual’s net worth.
Average Net Worth of a Renter Is $5,000
Recent statistics have shown that as of 2018, the average net worth of a renter in the United States was just over $5,000 while the average net worth of a homeowner was roughly $238,000.
Owning a home essentially acts as a forced savings plan because each time you pay your mortgage you are building your net worth on a monthly basis. This is something that won’t happen if you continue on renting each month in Southern California unless you’re proactively building your net worth via other investments.
What’s also great about buying a home is that the longer you stay in your house you could eventually apply that equity towards purchasing a bigger home or a rental property in SoCal.
Regardless of how you use the equity from your home, owning a home is a smart move that will also enable you to build an “estate” that you can potentially leave behind for your children after you’ve passed away.
Don’t Waste Another 12 Months Not Buying A Home
Imagine where your net worth would be if you had purchased a home 12 months ago.
The good news is that the same opportunity that you had for buying a home 12 months ago still exists today because mortgage interest rates are still historically low. This means that if you buy a home right now you will be in the absolute best position because you’re going to have an affordable mortgage payment over the course of a 30-year mortgage loan.
Will Interest Rates increase? The Federal Reserve has given every indication that a rate increase is not in their plans for the remainder of 2019 but come 2020 it’s anyone’s guess if Interest rates will increase or if there will be changes to the Real Estate market.