submitted by Kathleen Layton, Berkshire Hathaway Home Services, Fox & Roach Realtors
According to a recent Gallup poll, the answer is a resounding YES! As a matter of fact, real estate was voted the best long-term investment for the 11th year in a row, beating out gold, stocks and bonds.
Even with all that’s going on right now, it should be reassuring to those purchasing their first home, trading up for a larger one, or downsizing, that Americans understand owning a home is a sound financial decision. That’s because your monthly mortgage payments decrease the balance owed. And as home values rise, as they inevitably do over time, so does your net worth.
As Lawrence Yun, chief economist for the National Association of Realtors notes “. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”
It’s no coincidence that the wealthiest among us own a bunch of real estate, whether it’s personal residences, second homes, or investment properties.
The good news is that homeownership is not just for the wealthy. There are several programs available for first-time home buyers.
Perhaps it makes sense for a rental property to be part of your investment portfolio. Or invest in a second home.
Whatever you’re considering, remember that real estate is a long-term investment, so now’s the time!
Call Katheen at 215-801-2019 to discuss the possibilities and formulate a strategy that works for you.