Impact Of Rising Home Prices

 

 

 

Learn how to deterrmine your current net worth and how an investment in real estate can help improve your bottom line. 

 

 

If you're a homeowner, it's important for you to understand how your home's value contributes to your overall net worth. If you're a renter, now is the time for you to figure out how homeownership fits into your short-term goals and your long-term financial future. An investment in real estate can help you grow your net worth, build wealth over time, and gain a foothold in the housing market to keep pace with rising prices.

 

 

Net worth is the net balance of your total assets minus your total libilities. Or, basically, it is what you own minus what you owe.

 

Assets include the cash you have on hand in your chequing and savings accounts, investment accounrt balances, salable items like jewelry or a car and, of course, your home and any other real estate you own.

 

Liabilities include your total debt obligations like car loans, credit card debt, the amount you owe on your mortgage, and student loans. In addition, liabilities would include any other payment obligations you have, like outstanding bills and taxes.

 

 

To calculate your net worth, you'll want to add up all of your assets and all of your liabilities. Then subtract your total liabilities from your total assets. The balance represents your current net worth.

 

 

                                                       TOTAL ASSETS - TOTAL LIABILITIES = NET WORTH