7 Reasons to Get into Homeownership

Have you been feeling the pull of homeownership?  Has that little voice in your head been whispering “Wouldn’t it be nice to have a garage for my car or not to know my neighbor's bathroom schedule?” Before you go out and get yourself a real estate agent, I suggest you ask yourself a few more questions first.  Start with “Other than comfort in my living space, are there any other good reasons for buying a home?”

I’ll admit the first reason my husband and I thought of buying a home was to make money, as an investment.  However, we did stop and take inventory after that.  We made sure we were prepared for the financial burden of taking on a mortgage and keeping up a home.  I will discuss making sure you’re prepared to buy a home in my next blog. Right now I am addressing what the good reasons to buy one are, the pros on your ‘Rachael or Julie’ list. Sorry, this just brought to my mind that Friends episode.  

So, number 1 on my list of top reasons to buy a home is Appreciation.  According to the Federal Housing Finance Agency (FHFA), the average rate of home appreciation over the last 22 years was 4.3%.  22 years would obviously include the housing crash in 2008 when home prices fell nearly 30%, yet homes still ended up gaining on average 4.3% per year!  That’s a pretty solid investment.   Of course, not every home in every location will gain this.  I am not discussing outliers.  Equity is number 2 on my list.  When looking at buying versus renting we have to account for the fact that rent is money you will never see again.  Not even a small percentage of rent comes back to you when you move out of a rental or the longer you stay in the same rental.  Number 3, tax write-offs.  Yes, you can deduct your mortgage interest and your property taxes.  Some states may allow a small deduction for renters but in comparison owning a home offers better tax breaks.  Number 4, one of my favorites, a home can be an inflation hedge.  At times when inflation is causing rents to rise, homeowners continue to pay the same amount as when they first took out their mortgage.  Homeowners also get the option during times of lower rates to refinance and pay even less than they were before.  You will rarely see a landlord lower the rent. Now to get a little more personal, number 5 is freedom/greater privacy.  I feel that these two are very similar in that they both have to do with your personal space.  Everyone wants to make their space comfortable to them and with a home you are free to do this in a way that isn’t possible with most rentals.  Not everyone cares about staying in the same place, but if children are involved,  proximity to schools, friends, and family often becomes a priority, so stability is my number 6.  Backyards aren’t necessary but as we noticed over the last few years, they may be extremely beneficial to our physical and mental health, therefore, I have included them as number 7.  

There are obviously many reasons to own a home, however,  in my opinion, these are the top 7 reasons to own a home.  If I haven’t included a reason you think is as important as these, please share it with me in the comments below. 

 I’d love to discuss your pros and cons over a cup of coffee.  If you’ve ‘taken inventory’ and decided to become a homeowner or would just like to talk it over with someone, give me a call.