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      Blog :: 12-2016

      Homeowner's Net Worth Is 45x Greater Than A Renter's

      Homeowner’s Net Worth Is 45x Greater Than a Renter’s | MyKCM

      Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

      In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that by the end of 2016, the net worth gap will widen even further to 45 times greater.

      The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

      Homeowner�s Net Worth Is 45x Greater Than a Renter�s | MyKCM

      Put Your Housing Cost to Work for You

      As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth.

      The latest National Housing Pulse Survey from NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:

      “Though there will always be a discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

      Bottom Line

      If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, let’s get together and evaluate your ability to buy today!

      The Impact Your Interest Rate Has on Purchasing Power

      The Impact Your Interest Rate Has on Your Buying Power [INFOGRAPHIC] | MyKCM

       

       

      Some Highlights:

      • Your monthly housing cost is directly tied to the price of the home you purchase and the interest rate you secure for your mortgage.
      • Over the last 30 years, interest rates have fluctuated greatly with rates in the double digits in the 1980s, all the way down to the near 4% we are experiencing now.
      • Your purchasing power is greatly impacted by the interest rate you secure. Act now before rates go
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      Why You Shouldn't Take Your House Off the Market During the Holidays

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      If you are one of the many homeowners who is debating taking your home off the market for the next few weeks, don’t! You will miss the great opportunity you have right now!

      The latest Existing Home Sales Report from The National Association of Realtors (NAR), revealed that the inventory of homes for sale has dropped to a 4.3-month supply.

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