If you had asked me when I started my career as a Health Educator if I had a plan to build my personal wealth, I would have rolled my eyes; people like me, single and from a working class family, do not amass wealth. Yet here I am, slowly but steadily building my personal wealth and on track for an early retirement.
There are many reasons why owning a home makes sense: it gives you a place to live, you are protected from rising rents and it is a great way to increase your net worth. In the case of one of Advantage Home Plus clients, she bought a place she wanted to live in, not as an investment to make money. She took advantage of the mortgage benefit her employer offered, as well as the employer’s financial savings benefits: i.e. deferred compensation and direct deposit.
The recent release of the Federal Reserve’s Survey of Consumer Finances 2013 confirms that American families build wealth via homeownership. The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400. Over half (61.4%) of this wealth is attributed to the equity in their home.
The consumer survey, which is conducted yearly, collects data across all economic and social groups. Julian Castro, HUD Secretary stated, “A home is often a primary source of wealth in a family.” Having a home is a generational way to pass that wealth on. We want people responsible enough to own a home to have that opportunity. With that in mind, HUD has several new mortgage offerings with financial incentives for the first time buyer as well as fantastic loan programs for those who aren’t first time buyers. Contact us at: 1-800-376-4603 to find the lending program that suits you and to learn how your employee home loan program can save you thousands of dollars. It is never too early nor too late to increase your personal wealth.