As the United States economy keeps improving, many more people beginning to see improved personal finances. Instead of just living paycheck to paycheck, many are now able to accumulate savings and look for other ways to build their personal wealth. If one has the ability, aquiring real estate is one such way a person can begin to build their own personal wealth.
Let's take a look, assume a married couple purchased and obtained a home for $250,000 this past January. What do you think that home will be worth in 5 years?
Pulsenomics which takes a survey of 100+ real estate professional experts, investors, strategests and economists each quarter, asked these experts to project real estate prices for the next five years. Per the survey, they made predictions on appreciation of real estate over the next 5 years, a home valued at $250k today will make these gains in that time
In just 5 years, and depending on the market, a homeowner could potentially build $40,000 additional equity in that time frame. For many people, home equity is the single largest asset and contributor to a families net worth.
Here's the Bottom Line
If your are trying to maximize your family’s long-term overall wealth, buying a dream home could actually be a great investment.