Data from Bloomberg on Americans over 65 shows that homeowners are far likelier than renters to hold higher net wealth. This makes sense, as we all pay for housing, but some are not paying to eventually own the asset. Buying a home is often an overlooked wealth building tool in the traditional finance world, which encourages use of stocks and retirement funds. This week, the team at Foundation Mortgage in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee educates readers on growing their wealth through homeownership.
Overcoming Fears About Homeownership
While many Americans (particularly younger households) desire to own a home, many have fears about making this dream a reality. Some see the fluctuating mortgage rates and the skyrocketing prices as a deterrent. However, these people may not be thinking long-term about the wealth to be earned through homeownership. If you are holding out or waiting for the market to settle, its key to also look at your long range plans and set benchmarks for when you’d like to gain wealth. This requires asking tough questions: Are you putting a lot of money into a 401(k) or monthly rent that could instead go into owning a home that will gain substantial value? Will funds you have invested be available when you need them or are you paying them out without much return?
If you know that right now the rent you pay is as much as or even more than what you’d pay for a home mortgage, then it may be time to start changing plans. Otherwise, all you’re doing is helping your landlord grow their wealth. If you have some income and the ability to save money, then start taking some simple steps towards homeownership.
Making the Right Decision When Buying a Home
While we know that owning a home helps people grow wealth in the long-run, buying a home is not as easy as it sounds. You also need to make sure that you qualify for a good mortgage, save up for a down payment, and purchase a home that will help you accomplish your goals. This means that you cannot look to own vastly beyond your means. You may have to start smaller, and then work up to your larger dreams. However, you cannot simply wait for the market to settle and do nothing. A good first step is to speak to a real estate advisor to go over your options.
The professionals at Foundation Mortgage are here to help start your path towards homeownership in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee. Contact one of our helpful staff to learn more about buying a home today!