edited by Jodi Summers

Home ownership in necessary for wealth creation. Owning is better than renting because, over time, the net worth of homeowners significantly outpaces that of renters.

Researchers at the Joint Center for Housing Studies at Harvard University recently analyzed the reasons why the net worth of homeowners has outclassed that of renters, who- as a group – tend to accumulate little, if any, wealth.

The study found that the BIG reason is that homeownership requires potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.

Conversely, renting offers the potential for comparable wealth building only if renters invest an amount equal to a down payment plus any savings from renting. Research notes that most renters do not follow that path. Even in instances where renters have excess cash, psychologically, saving a substantial amount is difficult without a near-term goal. It is also difficult to systematically invest each month in stocks, bonds, retirement plans or other asset creation methods without the motivation.

Since the housing bust, renting has been the preferred way to go among young adults – who in earlier decades would have been first-time home buyers. The rate of homeownership has declined from a peak of nearly 70% in 2004 to a 20-year low of 64.3% in the wake of the Great Recession. Since then, the number of owner-occupied homes has barely budged, while the number of renter-occupied homes has increased by nearly 25%.

If the Baby Boomers, who were good savers, are having problems making ends meet, what’s to become of the Millennials?

Contact us and let us grow your real estate portfolio – Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211.

Our reputation assures your satisfaction.

**

http://www.nytimes.com/2014/11/30/opinion/sunday/homeownership-and-wealth-creation.html?_r=1

http://www.santamonicapropertyblog.com/?p=5880

http://api.ning.com/files/pdiUswshTHAXBPL3*MSvBTFwqgbLC6jpq*vPTm9s790oKday8W4il9LztaeSEuGVI5zl0sckfv9JF3mzuz5-Og0s2JfOLldt/supermansupermoney2.png

http://financialmentor.com/wp-content/uploads/2012/06/06/how-to-build-wealth/Final-How-to-build-Wealth.png

http://lovesiliconbeach.wordpress.com/2014/12/25/an-easy-way-to-build-wealth/

http://drewzlist.com/wp-content/uploads/2014/11/drew-saporito.jpg

http://www.santamonicapropertyblog.com/?p=5880

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

About Jodi Summers

Jodi Summers
SoCal Investment Real Estate Group
Sotheby’s International Realty
jodi@jodisummers.com

Sotheby’s International Realty’s legacy dates back to 1744. Respected as one of the world’s oldest and largest fine art auctioneers, Sotheby’s has a longstanding tradition of bringing together buyers and sellers of fine property. Today, Sotheby’s International Realty boasts nearly 13,000 sales associates, located in more than 660 offices in 49 countries and territories. Broker Jodi Summers is the founder of the SoCal Investment Real Estate Group, a top producing team with Sotheby’s International Realty in the Los Angeles area.

With more than $140,000,000 in listed inventory, Jodi and the SoCal Investment Real Estate Group know finance, rules, regulations, procedures and methods. We are accurate, knowledgeable, timely and aware of how government shapes the cities of Southern California, including Santa Monica, Venice, Culver City, West Hollywood, Beverly Hills and Los Angeles.

A New York native, Jodi grew up working in the family business – marketing, Madison Avenue style. Childhood math quiz questions calculated demographic and psychographic percentages or analyzed the allocation of adverting dollars. Word games were for devising slogans.

“My marketing and communication skills have proven to be a true gift when it comes to promoting real estate,” observes Jodi. “And I am consistently able to get an exceptionally high price per square foot for my sellers.”

Discipline (Jodi holds a Black Belt in Tae Kwon Do), organization, motivation, excellent communication skills and knowing & satisfying the needs of her clients have been her essentials for running a successful business. A passion for investment real estate explains her emphasis in asset-yielding properties.

The City of Santa Monica chose Jodi to be part of the prestigious 9-member Civic Working Group to analyze and offer feedback on the future of the 10.5-acre Santa Monica Civic Auditorium site. Additionally, Jodi is a member of the National Association of Realtors, Beverly Hills + Greater West Side Association of Realtors, Action Apartment Association of Westside income property owners, the Santa Monica Conservancy historic preservation society, the Friends of Sunset Park community group, the Real Estate Investors Club L.A., the American Solar Energy Society, Sierra Club, California Parks Association and the Culver City Rock & Mineral Club. She is currently the Communications Chair for the Ocean Park Association in Santa Monica, and a partner in Save the Civic – a community group involved with the City in the adaptive reuse of the Santa Monica Civic Auditorium and adjacent area.

An honors graduate from the Walter Cronkite School of Journalism at Arizona State University, Jodi moved to California in the mid-’90s to achieve her goal of living by the beach with a hibiscus bush in her yard.

She has thrived as an entrepreneur in the entertainment, media and marketing industries. She has three books in publication with Allworth Press – The Interactive Music Handbook, Making and Marketing Music and Moving Up In the Music Business. Making and Marketing Music is in second edition. Check out her work on Amazon.com.

Find out more about Jodi Summers through her social networks –
Linked In: http://www.linkedin.com/in/jodisummershere
Facebook: http://www.facebook.com/profile.php?id=1296490898
Flickr: http://www.flickr.com/photos/jodisummers/collections/
Twitter: http://twitter.com/jodisummers
About.Me: http://about.me/SoCalInvestmentRealEstateGroup
**

Our websites + blogs + brands include:
www.SoCalInvestmentRealEstate.com
www.SantaMonicaLandmarks.com
www.SoCalIndustrialRealEstateBlog.com
www.SoCalOfficeRealEstateBlog.com
www.SoCalMultiUnitRealEstateBlog.com
www.SoCalGreenRealEstateBlog.com
www.SantaMonicaPropertyBlog.com

Category

Money, Snapshot, WOW

Tags

, , , , , , , ,