June 7, 2023

4 Important Benefits to Homeownership: - Part 1

Why Own Rather than Rent?

Are you a renter wondering if you should renew your lease or purchase a home? Well, owning your own home can provide substantial benefits you may not have considered.

Homeownership can provide an individual or a family stability, tax breaks, as well as a sense of belonging within a community. There is no better way to validate your investment and commitment to a community than homeownership.

Stability:

Did you know that a mortgage payment can often be less than a rental payment? In such instances, you could utilize the difference to establish an emergency fund for yourself or your home. As we all know, anything can happen at any time; and whatever happens is 99% of the time going to cost additional dollars.

In addition to possibly saving money by paying a mortgage vs. rent, once you own your own home, you are building equity. This equity can be very beneficial for you and for future generations. Equity is one of the keys to financial success. It provides a solid, trustworthy cushion of funding–it’s like having earned income that you can one day use to help finance a child through college or upgrade to a larger home. Equity helps to create stability–and you don’t have to personally live in the home to continue building equity. You can continue to build equity in your home when you rent your home to someone else.

Lastly, stability may be found in the savings achieved by staying put rather than moving. No matter how you look at it, moving is expensive. The actual cost of moving, the time it takes away from work to search for and visit a rental, the weeks it takes to pack and move–and then unpack. Not to mention the additional time it takes to update your address for all of your bills and everyone with whom you correspond.

There is a sense of peace that comes with having a stable home environment–both for you and your children. It allows you to put down roots and build relationships in your neighborhood, community and your children with friends in their local schools. Homeownership can offer comfort in a variety of ways for you and for the future of your family.

Social Benefits

We are often reminded of the many benefits of homeownership, but many times the social benefits are overlooked. Did you know that owning a home can boost your social life?

A big social benefit of homeownership is the community you are able to build with your neighbors. Neighborhoods often have a homeowners association, annual block parties, organized sports, community activities and much more.

Whether you become close with your neighbors or not, you ultimately become part of a village where everyone has a vested interest in looking out for the safety and security of the neighborhood. Civic engagement becomes more important when you have a long-term financial investment–such as a home. You may be more inclined to vote in a  local election knowing that the outcome could be significant for you, your home, and your neighborhood.

Owning a home also allows you to be social when you want, how you want. You’re able to take control of your space and create the level of privacy you and your family desire–whether it’s building a fence or an in-law suite. You are also able to make those home improvements knowing that the return on investment goes right back into your pocket and not your landlord’s. You can build the home office you’ve been wanting, knowing that you are increasing the value of your investment.

Homeownership is an opportunity to make a solid investment in your social life for the long-term.

Wealth-Building Benefits

Owning your home can create greater financial independence and an increased sense of self worth. When you are able to build equity in your home, it creates a real financial cushion for you in case life happens- we all know unexpected, expensive life changes can happen at any time. Having equity in your home provides assurance that you are prepared for whatever life may throw your way- without additional financial stress.

Homeownership naturally builds a long term savings account for you and your family. It provides a way for you to build wealth today as well as for future generations. It creates an opportunity to be in greater control of your finances with a solid foundation underneath you. Many people feel that buying a home may tie them down to one location. The truth is, you can buy a home wherever you want and the equity you build along the way will move right along with you.

Be sure to read The Benefits of Homeownership: Part 2 for a breakdown of the tax benefits of homeownership!