How to Put Your Housing Cost to Work for You

There has been a lot written about the benefits ofhomeownership. One benefit that continues to rise to the top is theadded wealth homeowners gain simply by paying their mortgage whiletheir home increases in value over time.

The National Association of Realtors (NAR)recently broke down the equity gained from price appreciation andprincipal payments in their Economists Outlook Blog.Homeowners who purchased their homes five years ago have alreadygained almost $80,000 in equity over that timewith 80% of the gains coming from priceappreciation.

For a homeowner who purchased their home 30 years ago, they havegained nearly $250,000 in equity with 70% coming from priceincreases. The full results can be seen in the chartbelow.

According to the Home Price Expectation Survey, afamily who purchased a median pricedhome this January can expect to gain more than $42,000over the next five years simply from price appreciation alone.

Bottom Line

Your home is one of the only investments you can live inside asyou pay it off over time.  If you are ready to use yourhousing costs to build wealth, let’s get together to discusshow to make your dream a reality.