Home Ownership Increases Median American Family Net Worth

Stu and Misty have assisted so many homeowners with the sale and particularly lately the "short sale" of their home. We often hear that the owners have some guilt for defaulting and not being able to pay the bank. Due to this they do not want to own again.

Home ownership admittedly is not for everyone but we can tell you that from reading government statistics Real Estate is the leading way to build wealth in the United States and it is still part of the American dream. I remind everyone it is one of our earned rights to be able to own a home and not everywhere in the world has the ability to do this.

According to the Federal Reserve the median net worth of a home owning family in the United States is more than $200,000 compared to about $5,000 for a family who rents.

Not only do you get the security of owning a home and not having the fear of a move at the end of each lease period depending on your landlord but it increases your net worth value. Home ownership can also of course be passed along to children to give them a better life, borrowed from for emergencies,  and when  your children leave the nest. Of course it can be sold for profit and help you retire.

Although we are not accountants we think it is safe to say that the government's tax laws are set up to assist the home owner not the tenant. Your income taxes are reduced due to mortgage interest, you have a capital gains income allowance up to $250,000 for a single or $500,000 for married where you pay no capital gains tax (see your accountant) and even property tax is a write-off of your federal income.

The Miami - Ft Lauderdale area was reported by CNN in January of 2011 to be one of the hottest markets in the country to purchase a home due to the recent over deflated values.

Come on America let's put people back to work and help build your own wealth at the same time.