Did you know that an average home owner’s net worth is 36 times more than the average renter? To put that in dollar amounts a home owner has a net worth of $194,500. Renters have an average of $5,400.
The Federal Reserve conducts this study every three years called the Survey of Consumer Finances. This is where they came up with these numbers. A few years back the average home owner was $170k and the average renter was $5,100. The gap gets bigger. This is because homeowners (or your landlord) gets the most benefits. The mortgage balance is being paid down, which means your debt is going down. Plus home values on average go up between 4 and 5% a year. These don’t even mention the tax savings you get from interest.
If you own a rental property you get these same benefits but multiple because you aren’t even paying the mortgage, your renters are. Renters pay your mortgage, your interest (you still get the tax benefits), your home value increases, and in most cases you make money. See why to buy rentals properties.
If you rent, you are paying everything for someone else. You are helping someone else’s net worth. Stop renting. There are ways to get into a home with little to no down payment. If you want to start to grow your net worth you should start your home search.