Owning a home is a major financial milestone and an achievement to take pride in. One main reason: the equity you build as a homeowner gives your net worth a big boost. And with high inflation right now, the link between owning your home and building your wealth is especially important.
If you’re looking to increase your financial security, here’s why now could be a good time to start on your journey toward home ownership.
Equity Gains Can Substantially Boost a Homeowner’s Net Worth
The net worth gap between owners and renters exists in large part because homeowners build equity. When you own a home, your equity grows as your home. As a renter, you don’t have that same opportunity.
Home ownership is still considered one of the most reliable ways to build wealth. When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.
But on top of that, your home equity grows even more as your home appreciates over time. That has a major impact on the wealth you build. Building home equity can help you increase your wealth over time. A home is one of the only assets that have the potential to appreciate as you pay it down.
In other words, when you own your home, you have the advantage of your mortgage payment acting as a contribution to a forced savings account that grows in value as your home does. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.
Let us connect today, on Metropolitan Real estate, which has multiple ongoing projects such as The Metropolitan Tower at Bole Rwanda in front of Mamokacha cafe. Metropolitan Central Tower Luxury Apartments are around AU headquarters. Metropolitan Westview Standard Apartments is located at Total Soset Kuter Mazoriya and The Metropolitan Residence is located around Bole Main Road, In front of Mega Building. Contact us with the Ethiopian office: +251973404040 and the USA office: +1480 280 2242.