Homeownership in Hoboken, NJ can bring with it many blessings. Yet, the idea of caring for and maintaining a home, as well as affording a mortgage can seem daunting, but let's review some of the many reasons that homeownership can be beneficial.
The most obvious benefit is building wealth. The U.S. Department of Housing and Urban Development (HUD) notes that home equity is the largest single source of household wealth for most Americans.
What is home equity? Home equity is the difference between the home's fair market value and the outstanding balance of all liens on the property. Let's say you have a balance of $100,000 left on your home's mortgage, but the property appraises for $150,000. You now have $50,000 worth of home equity.
And let's not forget about appreciation. While there is no set year-to-year rate that is considered normal, reports indicate that you can expect around a 6.5 percent average value increase in your home each year.
The National Homeownership Strategy cites that through homeownership, a family invests in an asset that can grow in value and generate financial security. This is what sets homeowners apart from renters.