Skip To Content

Building Net Worth Through Home Ownership in ABQ, New Mexico

How to build your net worth through home ownership and what it means for your family’s wealth.

NM Homies Real Estate – Helping you buy and sell in ABQ, New Mexico

www.nmhomies.com

How do you grow your net worth through homeownership? 🧐

Have you ever heard the term net worth and wondered how you could gain net worth or what exactly it is?

Net worth means the total wealth of an individual, company, or household, taking into account all financial assets and liabilities. To gain net worth you must increase your income, investments, and assets.

We often hear that we must become homeowners to build wealth, but how does home ownership create wealth exactly? Homeownership can create wealth in various ways and the most commonly known way is by building equity, so let’s begin by explaining how gaining equity can help you create wealth and increase your networth.

Properties appreciate over time

Typically, your home value will appreciate over time meaning that as you are paying off your initial Home debt you are creating equity as the value of your home increases. For example, if you purchased a home in 2005 for $100,000 the value of your home in 2022 could now be $250,000 dollars increasing your equity by $150,000 and your overall net worth.

Tax deductions

When you are the owner of a home at the end of the year when you file your taxes, you can get tax benefits such as deductions on mortgage interests, mortgage discount points, mortgage insurance, and property taxes. These reduce your taxable income and help you keep more money.

Monthly payments are locked in

As a renter, your monthly payments are subject to increase based on your landlord’s discretion.. but as a homeowner, your monthly payments are pretty much set until you decide to refinance or sell the home.  This helps you not only save money in the long term but allows you to have more stable finances that you can predict. This opens up more comfort and stability when thinking about other investments. In addition to this, once you own a home and come across a better interest rate you can refinance for a lower payment! The likelihood of your rent ever going down is low.

Leverage

When you home a home, especially if you got it at or below the price range you are comfortable with, it can create leverage with your finances. When you own your home you start to have more options when it comes to utilizing the equity you’ve built for other investments. One common option is to grow that equity in your home, refinance (maybe even get a lower interest rate!), and then use that money taken out to purchase a second home or investment property.

It’s shown that on average owning a home increases your net worth by about $292,000. A piece of property is one of the largest assets you can have and if you treat it right it makes a big difference in your future buying power too.

If you are ready to build your net worth our NM Homies team is ready to help you give us a call today!

505-514-3380

Find the value in your home | Talk to us about buying a home

Follow us on Social Media:

Facebook | Instagram | YouTube

nmhomies.com

Trackback from your site.

Leave a Reply

*
*