In part 1 of this 3 part series we discussed some of the personal variables to factor in when making the decision to own real estate or rent. Now in part 2 we will consider the positives of home ownership…
Benefits of Purchasing a Home
Ownership – For most people, owning their home is a key element of attaining the American Dream. And there is nothing quite like buying your first home and realizing it is all yours (provided of course that you continue to make your mortgage payments on time). Homeowners also tend to view their purchase an investment and have incentive to keep their property in good repair.
Building Equity – Obviously the largest benefit is that you are now building equity in your own property instead of contributing to the equity in someone else’s property via rent payments. Historically, home ownership has been a long-standing means of building long-term wealth.
Decorating Without Limitations – As an owner, you have the freedom to personalize your property to your heart’s content, subject only to local code and any applicable Homeowners’ Association rules, unlike when you rent and experience many restrictions as to what you can and cannot do to the rental property. No need to get approval to paint interior walls, change flooring, install custom closet organizers, or complete minor home improvement projects. Although larger remodel projects may require getting permits, other than meeting code requirements, you are limited only by your budget and creativity when making changes to reflect your personal tastes and style.
Financial Stability – Fixed rate mortgages result in both greater financial stability and predictability. Assuming a fixed-rate mortgage, over time your housing costs should become a smaller percentage of your monthly budget as your income continues to grow while the mortgage remains constant. Additionally, fixed mortgages offer a great deal of predictability when preparing long-term budgets. Although repairs and maintenance will need to be factored in, there will be no surprises with unexpected hikes in rent.
Personal Benefits – Owning property frequently allows you a greater opportunity to meet neighbors and develop friendships with others that hold values similar to your own. And unlike apartment dwellers that tend to be more nomadic and view their unit as just a place to sleep at night, homeowner’s tend to move less often and view their homes as investments. It is also not uncommon to find neighbors that were drawn to the area for many of the same reasons that caught your attention – good reputation of schools, easy access to public transportation, close proximity to outdoor activities, the architecture of the homes, or the availability of shopping, dining and entertainment within walking distance – giving you something in common right from the beginning to build upon.
In part three of this three part series we will examine the benefits of renting…
In the mean time, did you have questions or comments? Comments are heavily encouraged and are a good way to gain feedback on thoughts you may be having about the topic. Also, if you have a specific question or thought, please email me and it will be my pleasure to be of resource.