Achieving the title “homeowner” is an accomplishment worthy of celebration! After all, purchasing a home is likely the largest financial transaction most people make in their lifetime, and there are many benefits to owning a safe space to call home. The top four are listed below:
1. Not Paying the Landlord’s Mortgage
While the upfront cost of a home requires some form of down payment (as little as 3% in some cases), affording a monthly mortgage can be on par with paying rent. Owning a home is better than continuous rent hikes, lease renewals and building equity for someone else. Instead of paying to build someone else’s wealth, homeowners are able to build their own with consistent mortgage payments.
2. Potential Investment
On top of being what is likely the largest asset in someone’s life, a home is often seen as an investment. While there is no guarantee for an increase in value in a home, proper upkeep could help grow the market price over a period of time.
Additionally, equity – how much of the house the homeowners currently own (or the difference between the potential selling price of a home and how much money the owners owe the lender) – is built over time as mortgage payments are made. This in return increases the stake the owners have in their home. If the owners live there long enough to see the end of the mortgage, they will own the property outright – a one factor renters will never be able to achieve.
3. Freedom to Personalize
Rental living comes with many restrictions whereas homeowners have privilege to customize their space. There are no limitations to creative flair inside, like painting the walls and using nails to hang art – though some community HOA guidelines regulate a home’s exterior appearance. Owning a home also allows the opportunity to make unique changes and renovations to the structure, upgrade curb appeal and enhance outdoor living space.
4. A Place of Belonging
A home is a central place to entertain and gather with loved ones and possessing a home helps foster emotional well-being and provides control compared to renting. Oftentimes, homeowners find a great sense of belonging in a community where they get to know their neighbors and engage in neighborhood events.