Yesterday we had what most likely will be the last in a series of the Smart Home Choices Workshop. It was a great success, I counted about 80 home owners and great feedback.
It was great to see that banks have ramped up their assistance for troubled homeowners but it was clear that if you need help from your lender you do need to do a lot of homework -> banks are not social security. Should you like a copy of the handouts given, please let me know.
Data from Harvard University’s Joint Center of Housing Studies illustrate not only that the median net wealth of homeowners is 34 times greater than that of renters, but also that over half of that wealth is generated from home equity.
The website Housing Markets Facts mentions :The Department of Commerce reports that between 1995 and 2004, the average renter accumulated a little over $4,000 in net worth. The average homeowner accumulated $184,400. That translates into $180,000 more, or $1,500 per month. In other words, each month that the average first-time buyer continues to rent, it costs them $1,500 in lost wealth accumulation. Furthermore, renters are subject to rent increases as well as higher tax rates because they cannot take a mortgage deduction.
So no matter how difficult it is: if you can, hold on to your house.
Have a great day!
Mirjam de Rijk