The Benefits of Homeownership
Homeownership is more than just a roof over your head. It's an investment, a place you can put your stamp on, and most importantly, it's a way to build wealth. In honor of National Homeownership Month, we want to take the time to reflect on all the benefits homeownership has for our lives.
The Emotional Benefits
Because it is a location that is entirely unique to you, having a property might provide you with sentiments of pride and happiness in numerous ways.
Your Home Can Reflect Your Tastes and Personality
Investopedia describes it like this:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.”
That knowledge can lead to a powerful, emotional connection to the place where you live. But so can the realization that your home will grow with you. Because it's yours, you have complete control and flexibility over how you use it. As Logan Mohtashami, Lead Analyst for HousingWire, says:
“The psychology is that this is yours and you’re going to make it as good as possible because you’re in for a long time, . . . “
And that can create a greater sense of ownership, pride, and connection with your home and your community.
It Can Enhance Your Neighborhood and Civic Engagement
Homeownership may encourage you to become even more involved in your community. After all, you're putting down roots in a location and will want to do everything you can to make it better, just like your home. According to a recent report, the National Association of Realtors (NAR) says:
“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”
The Financial Benefits of Homeownership
When you choose to buy a house, you're also making a financial decision. That's because your home is also an investment.
It Can Help You Feel Financially Stable
There's no denying that homeownership is one of the finest methods to boost your long-term financial situation. You'll not only have a regular monthly housing expense that can help you budget in the near term, but you'll also get equity as your house increases in value and makes your monthly mortgage payment. As Freddie Mac says:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
It Can Grow Your Wealth
Because of your rising equity, you may increase the value of your home as a property owner. When you take a closer look at the difference in net worth between a renter and a homeowner, it becomes clear that owning a home is an excellent strategy to boost your long-term financial stability. According to NAR's most recent statistics, the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only around $8,000. This means that a homeowner's net worth is about 40 times greater than that of a renter.
There are many reasons to be a homeowner, and we've only scratched the surface. Homeownership has emotional, financial, and social benefits that are hard to beat. If you're on the fence about whether or not homeownership is right for you, we hope this article has helped to change your mind. Contact The Perreault Group to get started on the path to purchasing your ideal home.