A home is an investment that comes with many investment benefits. The house you live in can certainly be a wealth-building tool, but it’s important to have realistic expectations about how it might perform as an investment. If you stay in your home long enough, there’s a very good likelihood you will be able to sell your home for a profit because of appreciation later in the future. In fact, buying a home is one of the best long-term investments you can make.
One major benefit that comes with buying a home is that it can be a type of “forced savings” because, by making monthly payments on a mortgage, you’re using money in a constructive way by putting into an asset that you could later sell. Wealth manager and American Financial Author David Bach says that “buying a home is the escalator to wealth in America,” and it can even help you retire early if you pay off your mortgage.
The average American has roughly twice as much value in home equity* as they have in their retirement savings. Now that we have made the case for a home not only being a place to live life, but also a large final investment. We believe that it is only natural to explore ways to possibly use this key investment as part of a larger fanatical strategy. (My next blog post will be when or how to tap into your home equity.)
*What is home equity? Home equity is the difference in the market value of your home and how much you owe. Many investors follow their home equity and home market value simultaneously.
Overall, buying a home is a great investment to save for retirement and possible help fund your retirement. If you haven’t invested in a home or not sure you made the most of your investment- it’s not too late! There are many ways to increase your existing income. Check out my Reverse Mortgage or HELOC blog- https://www.mortgage-south.com/blog/ – to see two of the options you have when it comes to stretching your existing income and investing in your home.