In addition to being our place of residence, our homes have also served as workplaces, schools for our kids, and safe harbors during the global pandemic. Today, 65.6% of Americans call their houses their own.
June is National Homeownership Month, and in honor of it, Gallup has just ranked real estate as the best investment you can make for the eighth consecutive year. It’s no secret that there are many financial benefits to owning a home, but there are also benefits that come with owning a home that aren’t financially based.
Here are six reasons it’s time to stop renting and start owning.
- Community Pride and Involvement: When you buy a house, you’re not just purchasing the property; you’re investing in a community. Homeowners know that when the community isn’t thriving, their property values go down, which could cause them to lose money on their investment. Those who own their home are more likely to volunteer and become involved in the community since they own part of the neighborhood.
- Showcase Your Personality: While renters can bring in décor that helps them make the space their own, they’re limited on other changes that can be made. Owning a home allows you to have access to a space that is uniquely yours. You’re able to customize it the way you want without fear of losing your deposit or having to change it back before moving out. While decorations add to the space, adding built-in bookshelves or switching the paint color can completely change the feel of the room.
- Privacy and Freedom: As we have faced the challenges of our recent health crisis, the value of owning a home has grown even greater. A home provides a sense of security and privacy. For those who rent, maintenance crews and landlords can access the house and potentially show up without warning. When you own your home, you never have to fear someone showing up unannounced or living by someone else’s rules.
- Savings Account: Owning a home allows you to build equity, and as home values continue to increase, that equity can help you when you find yourself in a bind. While you never want to use all the equity in your home, when you find yourself in a situation where you need a large sum of money – whether it’s for home updates, medical bills, or to pay for your child’s college tuition – you have the equity in your house to fall back on.
- Increase of Wealth: Homeownership is an investment that gains value steadily over time, and experts predict house values will continue to rise. On average, homeowners have 40 times more wealth than renters, according to a 2019 Survey of Consumer Finances. Between 2016 and 2019, housing wealth increased by 32 percent across all income groups.
- Consistency: Every year, when renters renew their lease, they learn about how much more in rent they will be paying, even though they’re not getting anything additional. Owning a home means having better control over your housing payments. Mortgage payments stay relatively stable, but rent is always rising.
This June, take time to reflect on the ways you have benefited from homeownership. And if you hope to become a homeowner in the near future, be sure to contact me today to get started on your new home search.