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In the United States of America, the most frequent way to collect capital is by buying Real Estate.
Homeownership is what it makes people to get a more positive approach to the future which is given by the home wealth and prosperity effect.
It has been said that the average homeowner has about $52,000 in unrealized wealth in their properties. Families with annual incomes over $80,000 averaged about $110,000 in unrealized wealth. And, families with a smaller incomes than $45,000 averaged the same amount in unrealized wealth. Those families with incomes over $75,000 averaged $100,000 in "unrealized wealth." Families with incomes less than $40,000 averaged $40,000 in unrealized wealth.
This means that your property is more attractive that what you owe on it. You own a property that is really appreciated in value.
It is proved that about 40% of homeowners who sell their property, use part of the money to buy a larger home in South Florida or make any other type of Real Estate investment at a later time in Florida State due to the home wealth effect.
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