Renters, break out your hankies; Homeowners Build Serious Wealth

Not to rub salt in your renter’s wounds, but a recent assessment by  Lawrence Yun, chief economist of the National Association of Realtors®, isn’t likely to lift your spirits. A homeowner’s net worth, he told Forbes, will be 45 times greater than that of a renter by 2016.

The Federal Reserve reported last year in its Survey of Consumer Finances, based on 2010–2013 data, that a homeowner had 36 times the net worth of a renter—$195,400 for the former and $5,400 for the latter.

It makes sense: Homeownership is a form of forced saving. Every time you make a mortgage payment, you’re contributing to your net worth.

To learn more go to:

http://www.realtor.com/news/trends/renters-break-out-your-hankies-homeowners-will-build-some-serious-wealth/?cid=soc_20160323_59645986&adbid=10154116225667871&adbpl=fb&adbpr=35368227870