July 29, 2017
84 Percent of Americans See Home ownership as Good Investment
This article comes from https://www.nar.realtor/ by Cole Henry that talks about the American home buyers and that Real Estate is a good investment.
““Despite the growing concern over affordable housing, this survey makes
it clear that a strong majority still believe in homeownership and
aspire to own a home of their own. Building equity, wanting a stable and
safe environment, and having the freedom to choose their neighborhood
remain the top reasons to own a home,” says NAR president William E.
Brown, a second-generation Realtor® from Alamo, California and founder
of Investment Properties.”
Building equity is building wealth, basically if you own a home your living in a asset. I recently went back and looked at some of last year sales and the homes I sold were up $40k-$50K in equity. Say you have a $250,000 dollar home you purchase and the down payment is around 5%. That is a $12,500 down payment plus closing cost would be another $2000 lets say. That is $14,500 down payment. If purchased in the right location that home will grow in equity and that $14,500 would grow to $40k+ with the current market conditions within 24 months.
The reason Real Estate should keep growing in equity is the lack of inventory. Remember in 2008 when all the new homes just stopped? All those subdivisions looked like ghost towns with fences around them. They didn’t start building medium priced home until this year 2017. That is basically nine years of no medium priced homes being build. It will take a while to build enough new homes to cover 9 years.
” Eight out of 10 believe that the most important financial reason to own a
home is that the money spent on housing goes towards building equity
rather than to a property owner. Paying off a mortgage and owning a home
by the time you retire is the next most important financial reason for
buying a home followed by ownership being a good investment opportunity
to build long-term wealth and increase net worth.”
Lastly buying a home is the best way to create a nest egg for you and your family. That is how a lot of actors keep their fortunes growing through real estate. If you read a lot of real estate news you see actors and sports figures selling their homes for millions. I just saw a Tech exec selling his home for $18.3 Million dollars, a fashion designer selling her condo fro $5.5 million dollars, and Chris Rock is selling his Brooklyn apartment for $3.25 Million dollars. They all invest in real estate to live and make the fortune grow.
Getting the right Real Estate for your portfolio is key to having the best equity growth. My finger is always on the pulse of the areas I represent. Need real estate in Cleveland Metro or Phoenix Metro and Mexico? Call Brett 216-703-5740 Century 21 Premiere and 602-363-6551 EXP Realty and Playa Azul.