Owning a home is a great way to build wealth. Not only do homes generally see their value go up over time, but a homeowner’s equity grows as they pay down the principal on their mortgage. Put another way, when you own more of your home, you own more of its value – or profit should you sell.
That’s why it isn’t surprising that a significant share of recently surveyed retirees say they believe their home is the only thing allowing them a comfortable retirement. Among survey participants, 45 percent said they believe their home has helped them significantly in retirement, while 49 percent admit a drop in their home’s value would impact their long-term financial plan. But more than just a piece of a larger financial strategy, homeownership can also provide a comfortable – and affordable – place to age. That’s likely why 73 percent of survey respondents said they’ll do everything possible to stay in their home.
[Source: PR Newswire]