While buying a home is a dream for many North Carolinians, home ownership is much more than just putting a roof over your head. Purchasing a home is a foundational step for building generational wealth, and one of the most consistent ways to build a financial bedrock for future generations. In this week’s Home Matters Blog, we explore generational wealth, what it means for buyers and how home ownership can help you get there.
What is Wealth?
In technical terms, wealth measures the value of all the assets you own minus the debts that you owe. However, for individuals, wealth is a lot more than just numbers on a page. To many, wealth means financial freedom and being able to pass that freedom on to later generations. While wealth can mean different things to different people, a common thread exists. Building wealth allows you to live more comfortably and securely while having the freedom to make financial decisions that work for you.
Where Does Home Ownership Come In?
Building wealth comes in many forms. Some individuals choose to invest in stocks and bonds, while others work on saving their income and paying down debt, among many other strategies. Historically, one of the most efficient and effective ways to build wealth over time is with the purchase of a home. Buying a home with a 30-year, fixed rate mortgage like the NC Home Advantage Mortgage™ can help you build that wealth by:
- Providing you with a stable investment that also doubles as a place to live
- Acting as an automatic savings account as each payment increases the equity in your investment
- Giving you a stable housing payment so you never have to worry about rising rent costs again
- Allowing significant tax deductions and credits, such as the NC Home Advantage Tax Credit for qualified first-time buyers and military veterans
- Providing you with a valuable asset that you can pass down for generations
What About the Future?
One of the most significant benefits of home ownership is what it can mean for the future. With a stable, fixed payment, homeowners can anticipate their costs of living from year to year, and have more flexibility to make their financial decisions, including diverse savings, retirement accounts and even savings for children and grandchildren. Many homeowners who pay off their home enjoy living mortgage free, which makes comfortable retirement more affordable. Others choose to sell their home and move up to a bigger investment, which can also increase their wealth.
Let’s Get Started
Buying a home can be a versatile and foundational part of your wealth building plan, and the NC Housing Finance Agency helps make it easier for North Carolinians to reach that goal. With affordable mortgage products, down payment assistance, a statewide network of lenders and educational resources for homeowners all across the state, the Agency can help make home happen for you. Learn more at www.HousingBuildsNC.com.