fbpx

#1 Financial Benefit of Homeownership From An East Bay Realtor: Family Wealth

While growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move. They explained how a mortgage is like a “forced savings plan.” When you pay rent, that money is lost forever. When you make a mortgage payment, much of that money…

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on tumblr
Share on pocket

I’m an East Bay realtor and while growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move. They explained how a mortgage is like a “forced savings plan.” When you pay rent, that money is lost forever. When you make a mortgage payment, much of that money accumulates as equity in the home.

So, what exactly is equity? The equity in your home is the amount of money you can sell it for minus what you still owe on the mortgage. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. A recent study by CoreLogic explained that homeowners gained substantial equity over the last twelve months, and are essentially sitting on large sums of cash in their homes. In the study, Frank Nothaft, Chief Economist for CoreLogic explained:

“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth. The average family with a mortgage had a $7,300 gain in home equity during the past year, and a total of $177,000 in home equity wealth.”

For most families, their home is their largest financial asset. This increase in equity drives the net worth, or family wealth, of the homeowner. Renters are not earning that benefit. Instead, they’re building the net worth of their landlord.

Bottom Line

Home price growth will moderate during the pandemic. But once a cure is available, most experts agree that home values will again begin to appreciate at levels similar to what we’ve seen over the last several years. In the long run, our family elders will be proven correct: owning a home is a savvy financial move.

Why East Bay CA?

East Bay CA is known for it’s good economy, beautiful landscapes and extremely popular housing market. When other states and territories have experienced decline in housing prices the Bay Area in general has remained strong. This doesn’t mean you should not diversify your portfolio across many states, but East Bay CA Real Estate is certainly a strong place to start for a novice investor. There are even some great low cost homes that are ripe for renovation.

#1 Financial Benefit of Homeownership From An East Bay Realtor: Family Wealth
A late November storm rushed through the Diablo Valley in just a few hours, but left some nice light in the sky as the sun set. This 1×4 ratio panorama (3600h x 10,800w) shows fine detail and no pixelation even when printed at 6ft wide. The fall colors from the planted street trees is at its best at this time of year. The native trees do not have fall color. This is the view from Dinosaur Hill Park looking east.

Need More Information About Our East Bay Realtors?

We have a team of friendly, helpful staff & agents that specialize in East Bay CA real estate and property sales that can help you work out how to best get your property portfolio started. Our agents are here to put your needs first, get you the best deals and offers, help you buy or sell your dream home and build your investment portfolio. Reach out to our East Bay realtor team today to find out your options.

If you are looking to find an East Bay Realtor, or looking for homes for sale in East Bay CA, or even to sell your home with someone who will make sure you get the best deal and understand your needs – look no further – when you work with us, consider yourself family.

Buy & Sell Your Next Property with Range Homes

BUY

Buy your next home in the East Bay area with Range Homes
Trust Range Homes to Sell your East Bay home
Check out Range Home’s current East Bay homes for sale
You are in safe hands

When you work with us, consider yourself family

Get in touch today

Mark Pages-Oliver, MBA – DRE:02020349 | Lisa Caldwell – DRE:01267745 | Range Homes – DRE:02111757

Mark Pages-Oliver, MBA – DRE:02020349

Lisa Caldwell – DRE:01267745

Range Homes – DRE:02111757

Copyright 2021 © Range Homes. All Rights Reserved | Privacy Policy

Copyright 2021 © Range Homes.

All Rights Reserved | Privacy Policy

Site by Soto

Request a Callback

Request Training

Event Registration

Can't find what you are looking for?

We are always keen to explore adding new and different events to our community pages. So if you can’t find what you are looking for, let us know today and we will get on to it right away!

Become a Listed Provider

Can't find what you need?

We are always keen to explore adding new and different providers to our website. So if you can’t find what you are looking for, let us know today and we will get on to it right away!

Give us some Feedback

Please enter your email, so we can follow up with you.
Selected Value: 0