The Advantages of Home Ownership
When I think of the United States as a concept, there are several things that come to mind, apple pie, baseball, corn dogs, and homeownership. If you ask me, the last term goes hand in hand with the American Dream. Though initially it was tough for citizens to purchase homes, this changed in the early 20th century with the introduction of government-backed mortgage programs, such as the Federal Housing Administration (FHA) and Veterans Administration (VA), which made homeownership more accessible. I know that there are many advantages to renting a property vs. owning; in this article we'll explore some of the advantages of homeownership.
Equity Building: One of the biggest advantages of homeownership is the ability to build equity. As you make mortgage payments and your property value increases, you're essentially paying yourself instead of a landlord. This equity can be used for future investments or a down payment on a new home.
Stable Monthly Housing Costs: With a fixed-rate mortgage, your monthly housing costs remain stable over the life of the loan, providing you with a sense of financial security. Rent prices, on the other hand, can increase at the landlord's discretion, leaving you vulnerable to unexpected costs.
Tax Benefits: Homeowners are eligible for several tax deductions, including mortgage interest, property taxes, and some closing costs. These deductions can lower your overall tax liability and increase your savings.
Creative Control: Owning a home provides you with the freedom to customize and renovate your living space to fit your personal style and needs. You can paint the walls, add a garden, or even remodel the kitchen. The possibilities are endless when you own your home.
Community Ties: Homeownership fosters a sense of community and social ties, as you're more likely to stay in one place for a longer period of time. This allows you to build relationships with your neighbors, participate in local events, and contribute to the development of your neighborhood.
Long-term Investment: A home is often the largest investment most people make in their lifetime. While the housing market can fluctuate, homeownership is generally considered a safe long-term investment that can provide significant financial returns over time.
If you’ve made it this far and are set on buying a property, then we can start the homeownership journey. The first step is actually financially focused. Getting pre-approved for a mortgage is one of the most important things prospective home buyers can do. The reason is that being pre-approved helps prospective buyers understand what you can borrow for your home loan and plays an important role in how you’ll continue on your homeownership journey. Once you have a good grasp on your budget, the best way to prioritize all the features you want and need in a home is to put together a list.
Once a clear budget has been established then creating a list of how a home can fulfill your needs is an imperative prior to going shopping. I’d like to think of this as a laundry list where I can put all of my priorities for home buying and here is usually how I think about it:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle.
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender.
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner.
Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate agent. They’ll be able to help you refine the list further, coach you through the best ways to stick to it, and find a home in your area that meets your needs.
In conclusion, homeownership offers a range of benefits that can improve your financial and personal well-being. From building equity to customizing your living space to building community ties, owning a home provides a sense of stability, creativity, and investment that can improve your quality of life. If you’re looking to purchase or sell real estate, I’m here to help guide you through this process; let’s get in touch!
