It is just us or does it seem like the market is moving at the speed of light?! With inventory levels lingering low, increasing competition may be here to stay (Jason swears that every buyer in San Jose showed up at our open house last weekend!). If you’ve been hesitant to buy, sell/move-up or invest because of the market madness, it may be time to think again. Several recent studies confirm that homeownership and property investments create greater personal wealth and lead to a more comfortable retirement.
Check it out…
| Real estate is one of the top two assets for 78% of individuals aged 25-64, and for 87% of those aged 55-64 (the other primary asset is individual retirement amounts).
| Homeowners have 5.4x more retirement savings compared to renters.
| Homeowners have 3.6x more funds in college-savings accounts for their children.
| The median net worth of the U.S. homeowning household is 90x that of a renter.
| Property investors are 5x more likely to be homeowners themselves and have double the amount of investments in real estate holdings compared to renters.
While it’s easy to get discouraged with increasing home prices, it’s comforting when you realize that all the careful planning to make homeownership attainable DOES have a light at the end of the tunnel. Paying yourself, instead of your landlord, isn’t just a tangible, current benefit – but a built-in savings plan with serious long-term advantages. In addition to the greater retirement savings & overall wealth as outlined above, consider:
| Home price appreciation equals instant equity; Bay Area homes gained 4% year-over-year from 2015 to 2016 (that’s $35,960 in JUST ONE year on a home purchased for $899,000.)
| The tax benefits of owning a home; consider the income tax savings of $35 billion last year by homeowners.
While owning a home in today’s market may not be easy, it is definitely worth it! The current market may not make the process any easier…but WE can. Let us know if we can apply our strategy and expertise to your next buying, selling or investing goal.
All our best,
Mark & Jason