June is National Homeownership Month, the perfect time to reflect on how owning a home plays a crucial role in achieving financial stability and building wealth over time. Understanding the financial implications of homeownership is vital whether you currently own a home or are planning to invest in one.
Why Homeownership Matters Financially
Owning a home is a significant contributor to long-term wealth, with home equity being a major driver of net worth. Statistics show that the median net worth of homeowners is nearly 40 times higher than that of renters. Homeownership provides financial security, with 90% of homeowners reporting a greater sense of financial well-being compared to their renting days.
Advice for Current Homeowners
For those who already own a home, protecting your investment is essential. Keeping up with regular maintenance and making strategic home upgrades can preserve and even increase your property's value. In a high-interest-rate environment, reviewing your mortgage and understanding your home equity is critical. Instead of refinancing, consider leveraging your equity for financial planning or accessing home equity loans if necessary.
It’s also wise to maintain an emergency fund dedicated to home repairs, ensuring you're prepared for unexpected costs.
Advice for Future Homeowners
If you are considering buying a home, start by assessing your financial readiness. Check your credit score, savings, and budget to determine what you can truly afford. First-time homebuyer assistance programs can be a big help, offering grants or low-interest loans to aid with down payments.
Be sure to account for the full cost of homeownership, including mortgage payments, property taxes, insurance, utilities, and routine maintenance, to avoid financial surprises down the line.
Homeownership: More Than Just a Place to Live
Ultimately, homeownership is not solely about having a place to call your own; it's a cornerstone of financial stability and wealth-building. Take this opportunity to seek professional guidance or conduct a financial health check to ensure that your journey in homeownership aligns with your long-term goals.
This website is for informational purposes only and does not constitute investment advice nor a solicitation to buy or sell any security or engage in a particular investment strategy. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, member FINRA & SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Sellers Financial Services, Inc. and Cambridge are not affiliated. This communication is strictly intended for individuals residing in the states of AL, FL, GA, IA, MA, ME, NC, NE, NY, OH, OR, PA, SC, TN, TX VA. No offers may be made or accepted from any resident outside the specific state(s) referenced. Cambridge does not offer tax or legal advice.
