Wealth Building ? An Advantage of Home Ownership

As you grow older, the issue of wealth building comes front and center. Wealth building simply refers to increasing the net value of your total assets. Wealth building over time is one of the advantages of home ownership.

Building Equity

Owning a home can help you build wealth in two ways. First, you build equity by paying down your mortgage. A certain percentage of each mortgage payment goes towards a reduction in the total amount owed. Typically, payments in the first few years of the mortgage are primarily applied to interest on the loans. As time passes, however, more and more of each payment is applied to the outstanding loan amount. Before you know it, the $300,000 loan is down to $50,000 and you've gained $250,000 in wealth.

Appreciation is the second wealth building advantage to home ownership. Each year, the value of your home will increase or decrease slightly based on market prices. Over time, real estate has always appreciated in value. In the current market, homes in some parts of the country are appreciating at rates as high as fifteen to twenty percent! Appreciation is a very popular subject with homeowners.

Wealth Building Example

Let's look at a simple demonstration of how advantageous home ownership can be. Assume you buy a home in 2005 for $400,000 and, for the purpose of simply mathematics, pay no down. Over the next 10 years, your mortgage payments reduce the outstanding mortgage by $100,000 and the home increases in value to $600,000. The value of your home as a net asset has grown to $300,000 [$600,000 minus $300,000]! If you had rented during this period, you would have missed out on $300,000 in wealth. This simple example should show you the advantage of home ownership.

Historically, home ownership is one the best ways for families to build wealth. If you don't currently own a home, you should start looking for one.

Raynor James is with http://www.fsboamerica.org - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit http://www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.

---

Tax Assessment/Appraisal: How Do I Know What My Home is Worth?

If you are in the home buying or selling market,... Read More

Follow-Up - The Key To Successful Closings

If everyone always did everything they said they'd do, we'd... Read More

How To Sell Your Home FSBO

You decide to sell your home and believe you can... Read More

Staging Homes for Top-Dollar Sales

Wouldn't it be nice to have Roger Hazard's design team... Read More

An Overview of Easements

Title insurance is generally associated with insuring a purchaser's or... Read More

Make Money With Room Rentals

I don't know why I didn't do it sooner, but... Read More

Want To Be Profitable In This Real Estate Bubble? I?ll Show You How In Just Three Easy Steps

STEP#1. First you have to recognize that in order to... Read More

You Have 15 Seconds to Sell Your Home! 11 Steps You Can Take to Sell Your Home for Top Dollar

Selling your home? Here are some suggestions to help you... Read More

Home Staging: How to Make Your Tract Home Stand Out in the Crowd

Home sellers who wish to market their property in development... Read More

The Secret To Marketing Your FSBO Home For Sale

You're ready to put your home or land (house, townhouse,... Read More

Sell Your Income Property For More

Selling income property isn't like selling a house. You can... Read More

Why A Final Inspection Is Necessary

In the sales contract, the sellers of your new home... Read More

A Singles Game of Real Estate

This discussion leans toward answering questions asked most often by... Read More

Real Estate Investing: Infomercial and Mentoring Scams

Flipping through late-night infomercials recently, I saw two real estate... Read More

Do You Have the Correct Home Buyer Mindset to be Buying a Home?

By learning what you need to know and preparing how... Read More

Kings Bay Georgia Real Estate - Be Picky When You Choose your Realtor!

I have been a mortgage lender for many years and... Read More

Real Estate Investing By The Numbers

Just like most things real estate investing can be broken... Read More

Is An Old Home for You? ? The Cons

So you think you might like to buy an old... Read More

Salt Lake City Real Estate

From the mountains to the valley, there are many types... Read More

Are Condo Hotels What the Orlando Real Estate Investor Has Been Looking For?

Earlier this year the Hawthorn suites in Lake Buena Vista... Read More

For Sale By Owner - Use This Tip To Sell Your Home Quicker and At a Better Price

Your house is for sale by owner (fsbo), Along with... Read More

How to Attract Clients in Residential Real Estate

Doesn't it seem like everyone you know has a friend,... Read More

Old House? New House? Weighing Your Options

Maybe it has something to do with a childhood home... Read More

Popping The Real Estate Bubble Myth!

If you turn on the TV, listen to the radio,... Read More

Selling Your Home ? Alone or with a Broker?

How do you decide whether to sell your home (or... Read More

Create a Great Webpage to Sell Your Home

The majority of people in the UK who are looking... Read More

If You are Hiring a Neighborhood Specialist to Sell Your Home, there are Some Things You Absolutely

My husband and I were eating breakfast at the Good... Read More

Buying Property in Bulgaria : How to Avoid Making A Bad Investment

Where is it possible to buy a property on your... Read More

Hiring A Contractor - 10 Mistakes To Avoid

A very smart attorney I know paid $7,000 for a... Read More

Curb Appeal

First impressions do make a difference when selling your home.... Read More

Landlording And Other Aggravations

Here's the gripping story...You are the landlord of a small... Read More

How to Own a Dream Home in Spain

Every year hundreds of thousands of foreign visitors travel to... Read More

What To Expect From Your House Appraisal

Having your house appraised can be a scary step in... Read More