6 Benefits of Owning a Home

Buying your first home used to be a milestone signifying success, pride, stability, and maturity. The bird was no longer just out of the nest, but now building his own. Today, the perception of owning a home is shifting, especially for young adults. The appealing benefits of homeownership like putting down roots, building a financial investment, and having the freedom to maintain your own home are the very factors that are scaring young buyers away. As a result, renting is on the rise. On top of that, data from Pew Research Center tells us that a third of renters say they are renting by choice and don’t desire to purchase a home in the future. 

We know that homeownership isn’t for everyone. In fact, purchasing a home is one of the biggest decisions most of us will make in our lifetime. However, there are serious advantages of homeownership that are going underappreciated and underreported. For that reason, we want to take a fresh look at these 6 benefits of owning a home.

#1 Tax Advantages

The real estate industry lobbies politicians to create and maintain tax benefits for homeownership. Homeowners get to itemize deductions like mortgage interest, property taxes, and some closing costs from their annual income taxes. 

#2 Price Appreciation

Homes have steadily increased in value over time, and over the last year or so, prices have shot through the roof. Due to Covid-19 pandemic related inflation, home prices are rising at record-breaking rates. Home owners are listing their house for more than they bought it for and are often accepting offers way over the asking price. One reason owning a home is a wise investment is because your home will most likely increase in value. 

#3 Equity Building

Equity is the difference between what you can sell your home for and what you owe. It’s the portion of your home you actually own rather than owe. You build your equity with each loan payment. Equity also increases as the value of the home increases. Building equity gives you more borrowing and purchasing power. Equity in a first home often allows buyers to “upgrade” when buying their second home.

#4 Increased Privacy

When you own your home, you are in charge of your own space. There is no landlord or property management company to report to. No surprise inspections. 

#5 Freedom to Customize

Homeowners get to embrace all HGTV has to offer! All of your renovation dreams can come when you own your space and are not limited by rental restrictions.

#6 Stability

People who own a home tend to stay there longer. Maybe it’s simply because they want to avoid the process of buying, selling, and moving again. Whatever the reason, buying a home reflects a desire to stay in a place for a longer period of time and put down some roots. This kind of stability promotes positive mental health for families, adults, and children.

For the 72% of renters out there who say they do want to own a home one day, go for it! Homeownership has personal and economic value that you can count on!

Check out Advice for First-Time Home Buyers.