BUILDING WEALTH IN REAL ESTATE
More millionaires are made through real estate than in any other industry!
Did you know…
- 60% of homeowner’s wealth is from the equity they have built in their home.
- The average homeowner’s net worth is 46 times the net worth of the average renter.
- During the last three decades, home values have increased an average of more than 6.0% per year.
- There have been more millionaires made through real estate than through any other wealth building medium anywhere in the world!
A wealth of housing data clearly demonstrates that housing is a good long-term investment. According to a study by the U.S. Department of Housing and Urban Development, 60 percent of a homeowner’s wealth is from the equity they have built in their home. A Federal Reserve study has shown that the average homeowner’s net worth is 46+ times the net worth of the average renter.
You might be wondering if buying a home right now is a smart financial decision. The fact is, homeownership is key to building long-term wealth, no matter when someone buys. Studies show that, over time, most homeowners will steadily build equity. For example, during the past three decades, home values have increased an average of more than 6.0% per year*.
TIPS ON BUILDING WEALTH IN REAL ESTATE
Can the average person really build wealth with real estate?
- Utilize a long-term growth strategy
- Buy then sell to make a quick profit
- Hold properties over a long period of time
- Never run out of money! Spend less and save more
There have been more millionaires made through real estate than through any other wealth building medium anywhere in the world. It is based on one simple premise. That premise is the cost of land which appreciates through time. You cannot build more of it because there is a finite amount of it. As the demand for the land increases, so does it’s value. The world population is growing by leaps and bounds and people need places to live. As cities grow, land gets developed; the infrastructure built around it raises the value of the land a great deal because of its increased utility. The location of plot of land and the building situated on it also increase in value due to the demand.
Can an average person do this? The answer is yes. What do you have to do?
- You must work to have an income
- You must keep that income
- You must put savings program on cruise control, in other words, make your money, make money
Some choose to utilize a long term growth strategy by buying single family and multi-unit properties, renting them out and letting them appreciate thru time.
Others prefer to buy and sell to make a quick profit and then repeat the process over again. This strategy works on the basis of finding properties below their market value and selling them at market value for a profit. A variation of this is to buy properties and make improvements on the building or land and then sell at a higher value. Or you can hold properties over a long period of time and watch your investment grow!
If you’re one of the millions of people who will list their home for sale this year, it has been shown that when it comes to selling a home, you’re better off using a real estate professional. Someone who can get the job done in half the time and can sell it for more than if you sold it on your own. That’s because a professional Realtor like Norma Langston is an expert in her field – Norma has extensive experience staging the home, marketing it, showing it and attracting qualified buyers to view it. She can explain options in your area that best fit your situation. Every market is different, contact Norma before you embark on buying or selling real estate.
*NAR existing home sales historic series.