HOME OWNERSHIP STILL MAKES SENSE

It has been well-reported recently that the median American household’s net worth has dropped 29 percent.

In an article by Jay Papasan of Keller Williams Realty International he makes the case that home ownership still makes sense. Even in the wake of the Great Recession the numbers still point to owning rather than renting.

There has always been a large gap between the wealth of homeowners versus renters. Even with the crash home-ownership still contributes greatly to household wealth. At the height of the market in 2007 the median homeowner’s net worth was approximately $246,000 while renter’s median net worth was $5400 – a wealth gap of more more than $240,000. After the housing market crashedrenter’s net worth dropped by only $300 and homeowners lost $71,500. However homeowners still realized approximately 35 times the net worth of renters.

Even with the 29 percent drop in wealth, homeowners still were on average $169,400 richer than the average U.S. renter.

If your job situation is good and finances in shape now is a great time to build wealth by buying your first home or adding to your wealth through investment real estate.

Statistics according to the June 2012 Federal Reserve Bulletin’s 2007-2010 Survey of Consumer

Finances: 2001 2004 2007 2010

Median Net Worth: Homeowner $211,500 $212,600 $246.000 $174,500

Median Net Worth: Renter $5,900 $4,600 $5,400 $5,100

The Real Estate Difference: $205,600 $208,000 $240,600 $169,400

Authored by: Helen Keit

Helen Keit is an accomplished and forward thinking business woman with a 31 year career in real estate and is ranked in the top tier among Queens real estate agents. She has helped hundreds of families move, including many employees for dozens of the country's top corporations. She has been responsible for the sale of over 1,000 properties during the past 10 years alone. Helen is not only a licensed realtor and broker, but a Default Management Specialist: Eviction, ORE/REO. As a Certified Senior Advisor (CSA), a Seniors Real Estate Specialist (SRES), a Certified Relocation Professional (CRP), a Certified Global Mobility Specialist (GMS) and a Certified Luxury Homes Marketing Specialist (CLHMS), Helen has created unique programs to provide specialized solutions and unparalleled service for families transitioning to their next lifestyle setting. Her skill at negotiating, marketing and problem solving help buyers and sellers alike accomplish their goals - a smooth and profitable move! Contact: www.keitteam.com

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