20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Homeownership has proven to be a key factor in bolstering many people's net worth over the past four years.
With the steady rise in property values, homeowners have experienced substantial appreciation in their assets. The mortgage payments homeowners make also contribute to equity accumulation and increase net worth over time.
The typical homeowner who has owned a home for the last four years has seen a roughly $208,0000 increase in their net worth, assuming they put 10% down on a median-priced home in 2020, according to a recent report from John Burns Research and Consulting.
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People who have owned their homes for more than four years have increased their net worth by even more. Consider how much home equity some people have built since purchasing their homes:
- January 2000: $414,000
- January 2006: $338,000
- January 2013: $343,000
Home equity buildup supports housing demand across all buyer segments, especially as home prices have become more unaffordable. But not everyone has benefited from the rise in home equity, resulting in a growing gap between people who own a home and those who don't.
Homeowners have $31.8 trillion in equity, a significant increase from the previous housing cycle peak in 2006 when home equity hovered at just under $15 trillion.
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But not everyone has benefited from the increase in home equity, creating a financial chasm between people who own a home and people who don't.
Owning a home provides a stable investment avenue, offering a sense of security and potential for long-term financial growth. The combination of property value appreciation and equity accumulation has contributed to the recent rise in the overall net worth of homeowners.
Many homeowners are using their home equity for a larger down payment to buy move-up homes to reduce monthly payments. Others are using home equity to finance improvements and renovations.
Builders should pay attention to homeowners with a lot of equity because their children and families could gain from wealth transfer. Heirs will have sizable spending power because of robust wage growth and minimal housing expenses.
Rental operators can expect consumers with no accumulated home equity to drive long-term rental demand as housing becomes more unaffordable.
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20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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