Quit The Bullshit – Studies Find That Owning A Home Will Not Make You Rich!
Written by Antonio Srado on November 20, 2017
Most would probably agree that owning a home provides you savings.
While this is true to some great extent, there is often a misconception that if you own a home, you’ll become rich. Studies have found the contrary. According to Florida Atlantic University, Florida International University and the University of Wyoming, owning a home, in a variable market will not help you in obtaining wealth. The study suggest that people are better off taking control of their finances than relying in a fluctuating housing market to become rich.
As the largest market continues to grow, millennials are now settling down. One can only assume that the demand for real estate and homeownership will increase; therefore, increasing the housing market valuation. However, due to financial constraints in obtaining the funds for a down payment, there is still a significant amount of millennials that are choosing to rent over purchasing a home. As a result, we question our notion on how can we secure wealth as a homeowner. To our understanding, and similar to what the study suggests, it falls in line with taking control of our finances.
If we are choosing to rent, then we must consider how to invest the rental saving than to consume it on goods or services. So instead of living in the home you own, Johnson advises that being a landlord or investing your savings in real estate-related stocks and commodities can be more beneficial than keeping all your money in one basket.