Building Wealth With Homeownership 103
Parts 1 and 2 of this series explained building wealth is not
about quick profits! It’s about steadily increasing your net worth over time.
Home ownership is one of the easiest ways of building
wealth that’s available to the general public, non-investors, and average middle-class
Americans. Part 1 and 2 contained Rules #1 thru #7…
Typically, most improvements do not increase your home’s
value dollar for dollar. That does not mean they aren’t worthwhile. Just
understand they are not always building wealth. There is a difference between
making improvements to enhance living and enhancing property value. Most
improvements are a combination of both.
Here’s an example. Let’s say you want to add carpet to a
room. You can pay $12/sq.yd. for carpet, or pay $24/sq.yd. Will you get the
difference in price back when you sell? Probably not, because a future buyer
may not think the difference in the carpet is worth the price to them. So, you
must decide if the difference in price is worth it for your own enjoyment. Watch
here for a future article for more details.
Rule # 9: Understand the difference between appreciation and inflation.
Many people talk about homes as “investments,” and how they
“appreciate” in value over time. True investments produce a return on money
invested. That is not truly the case with private homes. Homes actually
depreciate in value because structures deteriorate if not maintained properly,
which costs money.
Typically, a home increases in value through inflation, not
appreciation. As general economic inflation increases the cost of goods and
services, it is also inflating the cost of housing. This increases your
potential wealth because home ownership is a type of hedge against inflation.
Paying attention to Rules 5,6, and 7 creates wealth.
Rule # 10: Know your financial position when it’s time to
sell.
Stay in touch with your Realtor to keep current on local
home values. Pay attention to economic inflation rates. Maintain your home with
an eye toward cost of living. If you are careful and thoughtful you will be
successful at building wealth.
Information courtesy of Orlando Realtor Teri Isner, Orlando
Avenue Top Team.
Teri Isner is the team leader of Orlando Avenue Top Team and has
been a Realtor for over 24 years. Teri has distinguished herself as a leader in
the Orlando FL real estate market. Teri assists buyers looking for Orlando
FL real estate for sale and aggressively markets Orlando FL homes for
sale.
You deserve professional real estate service! You obtain
the best results with Teri Isner plus you benefit from her marketing skills,
experience and ability to network with other REALTORS®. Your job gets done
pleasantly and efficiently. You are able to make important decisions easily
with fast, accurate information from Teri. The Orlando Avenue Top Team handles
the details and follow-up that are important to the success of your
transaction.
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Labels: Building Wealth With Homeownership, orland avenue top team, Orlando fl real estate, teri isner
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