UNLOCKING SUCCESS: WHY I’M STILL INVESTING IN HOMES DESPITE RIDICULOUS PRICES! {NEW HOME BUYERS SERIES FIVE OF SIX}
Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
HOMEOWNERS BECAME 40 TIMES WEALTHIER THAN RENTERS IN THE PAST TEN YEARS!
We sold our Illinois home and are building a new one in Florida despite the significantly higher home prices and more than double interest rates since 2021. Because over the past decade, the median-priced home in the U.S. gained $190,000.00 in value, making the typical homeowner 40 times wealthier than if they had remained a renter
WHY HOMEOWNERS ARE WEALTHIER!
- INCREASING EQUITY: As homeowners make mortgage payments, they gradually reduce the debt owed on their property. This debt reduction, coupled with potential property value appreciation, increases equity. In essence, homeowners are investing in an asset that has the potential to grow in value over time, effectively building their net worth. Between 2020 and today, my rental properties significantly increased in value while I slept!
- APPRECIATION: Homes generally appreciate over the long term. The below table shows homeowners’ wealth gains over the past ten years. I selected a few locations my family and friends have lived.
HOMEOWNERS’ WEALTH GAINS OVER THE PAST TEN YEARS
| METRO AREA | LOW INCOME | MIDDLE INCOME | UPPER INCOME |
| Asheville, NC | $67,170 | $144,500 | $174,150 |
| Baltimore-Columbia-Towson, MD | $76,550 | $88,120 | $97,350 |
| Chicago-Naperville-Elgin, IL-IN-WI | $73,490 | $78,880 | $69,350 |
| Miami-Fort Lauderdale-West Palm Beach, FL | $216,940 | $231,520 | $265,300 |
| Myrtle Beach-Conway-North Myrtle Beach, SC-NC | $91,780 | $120,370 | $122,940 |
| Naples-Immokalee-Marco Island, FL | $227,860 | $196,910 | $317,550 |
| New Orleans-Metairie, LA | $41,110 | $75,030 | $75,680 |
| New York-Newark-Jersey City, NY-NJ-PA | $118,630 | $134,900 | $140,570 |
| North Port-Sarasota-Bradenton, FL | $173,850 | $219,540 | $265,400 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $69,780 | $72,300 | $77,790 |
| Phoenix-Mesa-Scottsdale, AZ | $198,150 | $235,570 | $257,230 |
| Raleigh, NC | $114,520 | $153,440 | $178,370 |
| San Diego-Carlsbad, CA | $336,360 | $346,810 | $385,650 |
| San Francisco-Oakland-Hayward, CA | $493,570 | $444,530 | $682,450 |
| Tampa-St. Petersburg-Clearwater, FL | $139,860 | $176,120 | $222,130 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | $125,580 | $133,740 | $97,980 |
| Wilmington, NC | $112,440 | $157,180 | $176,610 |
| Winston-Salem, NC | $59,940 | $68,170 | $93,930 |
| SOURCE National Association of Realtors | |||
- Tax Benefits: Many former tax deductions have been eliminated, but NOT mortgage interest deductions, allowing homeowners to deduct the interest paid on their mortgage from their taxable income. Additionally, property tax deductions and the ability to exclude certain profits from the sale of a primary residence can result in significant tax savings.
- Control over Living Space: Homeowners can renovate and make improvements that will increase the value of their homes.
- Inflation Hedge: Real estate has historically been an effective hedge against inflation. As inflation erodes the dollar’s purchasing power, the value of homes tends to rise. Homeowners benefit from this trend as their property value increases, allowing them to potentially grow their wealth.
CONCLUSION:
Individuals can create a solid financial foundation and build wealth over time by investing in a home. Homeownership plays a pivotal role in helping you achieve long-term financial success.
“Over the long term, home ownership builds wealth.”
WHAT SUBJECTS DO YOU WANT TO READ NEXT? WHAT QUESTIONS CAN WE ANSWER? UNTIL NEXT TIME!
LET’S MAKE SOME MONEY! – CRYPTOCURRENCY, ANYONE?
YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – CHARITIES I SUPPORT
TRUST ME – YOU WILL LIKE THE BELOW BLOGS!
STRATEGIES FOR FIRST-TIME BUYERS TO AFFORD A HOME IN TODAY’S MARKET {PART ONE OF SIX}
WANT TO SAVE THOUSANDS $$$$$$$ ON YOUR NEW HOME PURCHASE? IMPROVE YOUR FICO SCORE! {PART TWO OF SIX}
HOMEBUYERS STATE ASSISTANCE PROGRAMS {NEW HOME BUYERS SERIES THREE OF SIX}
BEFORE BUYING YOUR NEW HOME, LET’S FIX ANY FINANCIAL HICCUPS! {NEW HOME BUYERS SERIES FOUR OF SIX}
ARE ADJUSTABLE-RATE MORTGAGES RIGHT FOR YOU?
ARE ADJUSTABLE-RATE MORTGAGES RIGHT FOR YOU?
QUESTIONS AND ANSWERS: DO YOU RECOMMEND HAVING A MINIMUM 20% DOWN PAYMENT
IS BUYING A HOME A GREAT, GOOD, OR RISKY INVESTMENT – TODAY?
Is Buying A Home A Great, Good, Or Risky Investment – Today?
BEST BUDGET TEMPLATES – FREE!
IT’S ALL ABOUT THE LOCATION, SILLY
STEP #2: IT’S ALL ABOUT THE LOCATION SILLY
NEW SERIES – CRITICAL THINKING – BY: DR. JAMES LEEMANN
USING CRITICAL THINKING IN PURSUIT OF POST-HIGH SCHOOL EDUCATION – CRITICAL THINKING SERIES – PART 2
CRITICAL THINKING – TOP TEN IN-DEMAND SKILLS FOR MANY EMPLOYERS! – CRITICAL THINKING PART 3: WHAT ARE THE UNIVERSAL STANDARDS OF THINKING?
CRITICAL THINKING – WHAT LEVEL OF THINKING ARE YOU? CRITICAL THINKING PART 4
THINKING IS DRIVEN BY QUESTIONS, NOT ANSWERS – PART 5 CRITICAL THINKING SERIES: WHAT QUESTIONS DO THE BEST CRITICAL THINKERS ASK?
WHAT {DO YOU, AS A} CRITICAL THINKER, DO TO LEARN? – PART 6A – CRITICAL THINKING SERIES
WHAT DO YOU AS A CRITICAL THINKER DO TO LEARN – PART 6B – CRITICAL THINKING SERIES
WHAT HABITS DO CRITICAL THINKERS USE WHEN READING AND WRITING? PART 7A – CRITICAL THINKING SERIES
PART 7B: SUBSTANTIVE WRITING: WHAT HABITS DO CRITICAL THINKERS USE WHEN READING AND WRITING? – CRITICAL THINKING SERIES
WHAT DOES IT MEAN TO BE A FAIR-MINDED CRITICAL THINKER? – CRITICAL THINKING SERIES – PART 8
WHAT DOES IT TAKE TO DEAL WITH YOUR IRRATIONAL MIND? – CRITICAL THINKING SERIES – PART NINE (9)
WHAT STAGE ARE YOU IN CRITICAL THINKING DEVELOPMENT? – FINAL CRITICAL THINKING SERIES – PART 10
TO CHANGE THE WORLD, BILL GATES SAYS TO READ A LOT! – A RAINBOW OF ROLE MODELS {WEDNESDAY SERIES}
Self-Made Billionaires Train Themselves to be Smarter – BY -THOMAS OPPONG
MY FAVORITE ANNUAL LETTER – BERKSHIRE HATHAWAY INC. 2021 SHAREHOLDER’S LETTER
Jamie Dimon, Chairman and CEO JP Morgan Chase and Company, 2021 Letter to Shareholders
BUILDING FINANCIAL FREEDOM/LEGACY TEN DOLLARS AT A TIME!
BUILDING FINANCIAL FREEDOM/LEGACY TEN DOLLARS AT A TIME!
FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!
https://wealthbuildingpowers.com/2019/04/01/financial-literacy-is-just-not-that-complicated-trust-me/
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
TURNING YOUR STIMULUS CHECK INTO MILLIONS $$$$!
https://wealthbuildingpowers.com/2021/03/22/turning-your-stimulus-check-into-financial-freedom/
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
To Join Wealth Building Powers BLOG:
PLEASE SIGN UP TO FOLLOW ME BY PROVIDING YOUR E-MAIL IN THE WORDPRESS BLOG PAGE SUBSCRIBE BOX!
Thank you to my followers and readers for your likes and comments. All comments, recommendations, and feedback are welcomed and utilized to improve this blog.
ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an N.C. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for Financial Literacy. I will help you get there.
To follow my daily posts on Instagram, CLICK BELOW:
http://instagram.com/wealth_building_powers
