When most people think about buying a home, they focus on mortgage rates, down payments, and finding the right property. Homeownership is more than a place to live — depending on your situation, it could be a powerful financial tool for building long-term wealth.
If you’re working on your financial goals for 2025 and beyond, understanding how real estate fits into your overall plan could be helpful to you.
A Home Is Often Your Largest Investment
Buying a home is typically one of the largest purchases you’ll ever make — and it could be one of the most valuable assets you’ll ever own. As financial advisor Gregory Ricks discussed with special guest Dwayne Stein — mortgage expert and host of Mortgage Gumbo — during a January 4th broadcast of Winning at Life with Gregory Ricks, today’s real estate market, even with higher interest rates, still offers significant wealth-building potential.
As Dwayne emphasized, “The home is a large investment, a most valuable asset. It’s about showing people the benefits of homeownership — with data, not just headlines.”
When you own real estate, you’re not just buying shelter — you’re creating an asset that (historically) grows in value over time, provides equity, and strengthens your overall financial position.
- Home Appreciation: Even modest appreciation (around 5–7% annually according to the nationwide average of Q4 2024 FHFA Housing Price Index Report) can significantly increase your net worth.
- Equity Growth: As you pay down your mortgage, your ownership stake grows — an important factor when planning for retirement, future investments, or unexpected needs.
- Tax Advantages: Mortgage interest deductions and potential capital gains exclusions could add important financial benefits to homeownership.
Why Waiting May Cost You More
Many potential buyers today are concerned about mortgage rates, which are currently hovering around 6-7% for a 30-year fixed loan. However, waiting for perfect conditions could be a costly mistake:
- Home Prices Are Still Rising: Even if rates come down slightly, rising property values could erase any savings you hoped to gain.
- Lost Equity Growth: Every year you delay buying, you miss out on potential home appreciation and wealth accumulation.
- Greater Competition Ahead: According to the National Association of Realtors, every 1% drop in rates brings about 5 million more buyers into the market — meaning more competition and higher prices.
Instead of timing the market, focus on aligning your home purchase with your broader financial goals.
Integrating Homeownership Into Your Financial Plan
Buying a home is not just a transaction — it’s a strategic step within your bigger financial picture.
Here’s a different way to think about it:
- Cash Flow Planning: Understand how your mortgage payment, insurance, property taxes, and maintenance costs fit into your monthly budget without derailing other savings goals.
- Investment Diversification: Real estate adds diversification to your asset portfolio, helping balance the risk associated with stock market volatility.
- Retirement Readiness: Paid-off homes can dramatically reduce living expenses in retirement, or act as a source of funds if downsizing or reverse mortgages become necessary later.
Owning a home should support and strengthen your other financial goals — not compete with them. Interestingly, today’s market may actually favor buyers who are financially prepared:
- More Seller Concessions: A recent report from Redfin shows that 42% of sellers are offering help with closing costs, repairs, or mortgage buydowns.
- Less Bidding Pressure: With rates still elevated, buyer competition remains manageable — giving prepared buyers the chance to negotiate better deals.
- Inventory Is Slowly Building: More homes are expected to enter the market throughout 2025, offering greater choice for strategic buyers.
If you view homeownership as a wealth-building tool rather than just a lifestyle choice, these conditions can work in your favor.
Make Homeownership Part of Your Wealth Strategy
At Gregory Ricks & Associates, we believe financial success isn’t about chasing market highs or waiting for “perfect” moments. It’s about making informed, strategic decisions that align with your personal goals.
Buying a home — whether your first, a second property, or a future investment — can be one of the most important moves you make for your long-term financial well-being.
If you’re ready to create a financial plan that supports all your goals — from homeownership to retirement and beyond — schedule a consultation with our team today or request a copy of Gregory’s book, Retirement Deserves a Helpful Hand: A Guide to the Destination You Deserve by emailing info@gregoryricks.com.
SOURCE ARTICLES:
Bradley, J. (2025). More Sellers Are Offering Concessions to Buyers, Redfin Says. Investopedia.
Federal Housing Finance Agency. (2025, February 25). U.S. House Price Index Report – 2024 Q4.
Heidenry, M. (2024, August 16). Homebuyers Gear Up for a Mortgage Rate Drop This Fall: What To Know as the Housing Market Shifts [Review of Homebuyers Gear Up for a Mortgage Rate Drop This Fall: What To Know as the Housing Market Shifts]. Realtor.com.
Martin, E. J. (2024, June 7). Beating the generational money curse: How homeownership builds your family’s wealth. Bankrate.
Compare Current Mortgage Rates Today (April 2025). Investopedia.
More information about special guest, Dwayne Stein, on Winning at Life with Gregory Ricks:
Mortgage Gumbo with Dwayne Stein.