Value of Home Ownership is Real

I know you’ve heard the statement, “its smarter to own a home then rent one.”  Turns out that’s more true today then ever before.  I came across an article in the “New York Times” while sitting on an airplane that sums up the real value of home ownership as opposed to those who rent. Most would agree home ownership makes financial sense.  According to the “Times” “home ownership is the path to wealth for most Americans.”  They point out that “homeownership long has been central to Americans’ ability to amass wealth; the new worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.” Wow! But what is the gap between homeowners and renters?  In a Survey of Consumer Finances from the Federal Reserve, they found “the average net worth of a homeowner of $194,500, was 36 times greater than the average net worth of a renter of $5,400.” There are many arguments you can make about the survey, including renters are generally younger than homeowners, earn less and all that.  But the bottom line is pretty clear — home ownership is a determining factor in a persons overall financial health. For most of us, buying is the smart way to go.  In today’s market, if you’re paying rent, you can probably afford a mortgage and begin to build your personal wealth. We love your comments.  For a free property valuation package, just email me at  pete@realestateshoworegon.com