Uncategorized May 11, 2023

Homeownership Builds Wealth

Emptying your pockets to shell out that first down payment… It may seem like buying your first home is going to break the bank.  However, the fact is it will actually make you richer in the long run.

“It’s the number one way for the average American to build wealth,” says Catherine Nimmo, Sales Associate at ERA Justin Realty, “And that wealth can turn into generational wealth to help your family down the line.”

According to the National Association of Realtors (NAR), homeownership is the largest source of net worth among families because, on average, the value of their primary residence is worth about ten times the amount most families have in financial assets.

“You achieve this amount of equity by not just paying toward your principal every month,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “But by watching your home’s value go up year after year through appreciation.”

“Of course, paying off your mortgage faster than expected certainly helps,” adds Nimmo.

The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, concurs saying:  “Building equity through your monthly payments and appreciation is a critical part of homeownership that can help you create financial stability.”

In other words, home equity does more to build the average household’s wealth than anything else. According to the title insurance company First American, this holds true across different income levels.

“Whether you make $100,000 a year or less than half that,” says Nimmo, “home ownership is achievable and the best way to build a nest egg that could last for years to come.”

Spring is the peak home buying season with more homes coming on the market. If you’re interested in learning more about investing in your first home, contact Catherine Nimmo or any of the agents at ERA Justin Realty by calling (201) 939-7500 or visiting one of our Rutherford locations at 46 Chestnut Street or 57 Park Ave.