The Benefits of Homeownership
Owning a home certainly means taking on a great deal of responsibility. After all, there will be expenses to pay, home maintenance to manage, and inevitable repairs to handle. However, being a homeowner also comes with a tangle of social, emotional, and financial advantages. What are the benefits of homeownership?
Homeownership Builds Wealth
People who are interested in purchasing homes are often thinking about the price tags involved. It’s worth spending some time contemplating the fact that becoming a homeowner is an opportunity to build wealth. After all, you will hopefully be building equity as you pay down your home loan, and that equity can have a major impact on your finances. In fact, home equity was one of the two factors cited in a recent report about wealth inequality in America. According to Census.gov, homeowners’ median net worth is 80 times larger than renters’ median net worth. Researchers studying the wealth gap noted that 37 percent of households didn’t own a home and 47 percent didn’t have a retirement account.
Moving.com suggests that putting money into a home is much like putting money into an investment account. Equity builds as you pay off your home loan. In fact, home loans are sometimes called a form of forced savings. It’s worth noting that you can also gain equity if your property’s value increases. A variety of things can lead to higher property values. You could take steps to improve the property. The area might become more desirable. In many cases, property values increase as time passes.
Homeownership Brings Freedom
When a landlord owns the space that you occupy, you have little control over it and little incentive to improve it. However, when the space you come home to each night is your own, you can customize it to suit yourself. As long as you stay within zoning laws or homeowners association rules, you can decorate a home that you own to fit your needs and wants. If you favor bold colors, you’re welcome to paint with them. If you want to upgrade the kitchen or bathroom, it’s your choice. Are you eager to plant flowerbeds, change out the stubborn front door handle for a snazzy new one, or set up your patio for entertaining? As long as your budget will bear it, you can do it when you own your home.
Homeownership Brings Financial Stability
When you rent, you are at the mercy of the landlord. The next lease could bring a rise in the monthly rent. Or, it could bring news that the rental will no longer be available, so you’ll need to relocate. In contrast, homeowners with fixed-rate mortgages know what their monthly payments will be, and they can make plans with confidence.
Homeownership Brings Social Stability
Owning a home seems to prompt people to put down roots. That can have positive effects for the whole family and for the community that they reside in. For example, homeowners are more likely to be involved in their community, more likely to be educated about current social and political news, and more likely to have children that graduate from college (source). While owning a home won’t magically make you more involved in your community and knowledgeable about politics, these correlations are noteworthy.
When you are ready to experience the benefits of homeownership, reach out to PrimeLending Denver. Your needs are our top priority, so we’ll listen carefully to help you select the best loan product for your unique situation. From application to closing, we’ll provide the guidance that you need to proceed with confidence. Contact us today to get started.