Owning your own home comes with many benefits. For first-time buyers it can be a daunting commitment. Nevertheless, it is important to not lose sight of the joys—financial, mental, and physical—that you’ll find that come along with your new digs.
Pride of ownership
When you own your home you own something that is entirely yours. In today’s market, the ability to own is a special privilege. Your home is a great source of pride as it is founded upon your very own hard work. It is a real financial and mental commitment and taking it upon yourself to be responsible for the roof over your head is invaluable.
Owning is an investment in your future
The day you walk into your new home is one you’ll never forget. That being said, while you spend the following days “in the moment,” settling in and enjoying the space, you’re actually building up your future at the same time. Home ownership is an investment in your future. Instead of putting your paycheck into rent—a place that will never be yours—you are pouring money into your future with home ownership. It will depend on where you buy, but often time people find that the cost to rent is equal to, or sometimes even more than a mortgage payment. You will also see that owning your own home means you have more to leverage for future investments.
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The financial benefits to owning a home abound—namely in the form of equity. So long as you are on top of mortgage payments, home ownership affords you the ability to build equity. Equity, in turns, provides you with the opportunity to make other investments as it can serve as collateral in the future. Although the real estate market has seen its fair share of troubles over the last decade, the long term should see an uptick which means homeowners will see their equity grow as their homes’ worth increases.
Speaking of the future…owning a home means protection!
Besides gaining equity as your home appreciates, owning your home provides some financial protection as well. As your home’s value appreciates over time, studies show that owning your home outpaces inflation year over year. If you opt to purchase your home so that you grow into it as a family you can bet that your home will be a reliable insurance against inflation.
Leverage ownership for savings
Another great way your home provides you financial protection is that it doubles as a ready-made savings plan. While you can leverage the equity in your home as collateral for other investments, you can also count on your home for savings. If and when you do look to sell—and particularly as your home has appreciated in value—you should be able to see some tax breaks that equal major savings.
Your mortgage on your home allows for additional savings too. While taxes are a guarantee in life there is a sunny spot in terms of home ownership. A great facet of your home mortgage is that tax breaks come along with your payment. When you initially purchase your home you are usually able to translate purchasing costs into some kind of tax deduction. Furthermore, depending on where your buy you may see additional tax breaks for your mortgage and property taxes.
2014 is a great time for homebuyers
The market hasn’t always been good to buyers, but now is as good a time as any for buyers—just another great reason to join the homeowners club. For the most part, the market is hot and mortgages are forecasted to be purchases rather than refinances. That being said, this means the mortgage process can be faster than it has been before. Do you know what that means? This is a great time to become a homeowner for yet another reason!
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Homeownership means financial predictability
When you negotiate your mortgage you effectively plan out a significant portion of your finances for the next 15 or 30 years. What homeownership offers is true predictability—something you will never get with renting. Even with pockets where rent control exists you’ll find that home ownership brings you peace of mind that what your paying today will be what you’re paying five years from now—if you so choose. It is important to note that it is possible that property taxes, and/or home insurance fees will rise, but generally you can even find that your overall costs stay flat while rents rise.
Finally…you have stability
Once you have made the decision to lay down roots in your new home you gain stability. Now that you have made the commitment to the neighborhood and city through the purchase of your home you know where your future lies. You can participate in community events and social groups with the knowledge that you’re all in. Homeowners find a level of stability that renters don’t realize because just as your financial status becomes more predictable, so does your everyday life in and around your home.
Lastly, but definitely not least, owning your own home means you have true freedom. If you want a bright red accent wall in the living room, or if you want to remodel your master bath to include your dream Jacuzzi tub…you can do it! Homeownership means that you get to have things your way. The space is yours to do whatever you want with it and where else can you get that?
Homeownership is a wonderful experience for these reasons and more, tangible and intangible. What you get are benefits you see in multiple ways…in your wallet, your peace of mind, and even the décor—it is your own taste, after all!