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Jeff & Stephanie Bast
01291224 | 01878816
951.264.8360
951.264.8387
bastteam@bastrealestate.com
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Your Real Estate Resource!
  • Bast Real Estate
    • Who Are We
    • Meet The Team
    • What Our Clients Are Saying
  • Buyers
    • Buyer’s Guide
    • Community Links
    • Homes For Sale By City
    • Our Featured Listings
    • Temecula Home Inventory $450k>
    • Meadowview Equestrian Community, Temecula
  • Sellers
    • Seller’s Guide
    • What’s My Home REALLY Worth?
    • Short Sales
  • Real Estate Resource
    • Blog
    • MVP
    • Real Estate Videos…To Keep You In The Know
    • COVID-19 Resources
    • Our Preferred Vendors
    • Community Links
    • Your Southern California Referral Partner
  • Let’s Talk Real Estate – Contact
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Your Real Estate Resource!
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#1 Financial Benefit of Homeownership: Family Wealth

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Jeff & Stephanie Bast,05/18/2020
While growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move. They explained how a mortgage is like a “forced savings plan.” When you pay rent, that money is lost forever. When you make a mortgage payment, much of that money accumulates as equity in the home. So, what exactly is equity?The equity in your home is the amount of money you can sell it for minus what you still owe on the mortgage. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity.A recent study by CoreLogic explained that homeowners gained substantial equity over the last twelve months, and are essentially sitting on large sums of cash in their homes. In the study, Frank Nothaft, Chief Economist for CoreLogic explained:
“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth. The average family with a mortgage had a $7,300 gain in home equity during the past year, and a total of $177,000 in home equity wealth.”
For most families, their home is their largest financial asset. This increase in equity drives the net worth, or family wealth, of the homeowner. Renters are not earning that benefit. Instead, they’re building the net worth of their landlord.

Bottom Line

Home price growth will moderate during the pandemic. But once a cure is available, most experts agree that home values will again begin to appreciate at levels similar to what we’ve seen over the last several years. In the long run, our family elders will be proven correct: owning a home is a savvy financial move.
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Bast Real Estate Sales & Consulting @ KW
27290 Madison Av Ste 200Temecula
CA 92590 | DRE Lic# 01411306
951.264.8360
951.264.8387
bastteam@bastrealestate.com

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