June is National Homeownership Month and while we’re in the rental business, we still understand the value of homeownership. In the last article we reviewed how the recognized National Homeownership Month came into being. It was something politicians thought important enough to focus on and celebrate. But why?
Owning a home comes with a variety of benefits—financial, emotional, and even social. Let’s take a moment to go over some of the key advantages:
Financial Benefits
Homeownership provides a host of financial benefits – the biggest being equity building in an appreciating asset. Every mortgage payment increases your ownership stake in the property. And most homes appreciate in value over time. All this helps to boost your net worth.
Another advantage in ownership is tax benefits. Mortgage interest and property taxes are tax-deductible resulting in less taxes annually.
While increasing insurance and/or taxes can have an effect, your mortgage will generally stay pretty consistent. Whereas with renting, rent rates tend to increase over time.
Lastly, we would be remiss if we didn’t also mention the potential to rent out your property or space, and generate an income. This is only possible if you’re a homeowner.
Autonomy
When you’re a homeowner you have the ability to customize your space however you want. Unless you’re in an area with an HOA, you also have that ability on the outside of your home.
From paint colors to flooring choices, renovations to additions, the possibilities are endless and yours alone to make.
You also get to make the call when it comes to pets. Due to insurance demands, landlords can’t give a green light to certain pets – if they allow them at all. When you’re the homeowner that decision belongs to you. And outside of normal maintenance, there are no additional fees for having pets.
Social Benefits
Ownership is not just a benefit that exists in your personal home, but in your neighborhood. You’re more inclined to engage with the community and be vested in local decision-making. While this can be done with long-term renting, there is stability and a sense of belonging that comes with being a homeowner. You have more personal pride in your neighborhood and are therefore entrusted with its maintenance. After all, your home’s value will depend on it’s location and neighbors so it’s to your best interest to be involved in its upkeep.
Emotional Benefits
There can be many emotions attached to homeownership. It’s not just an investment, but a place to feel safe and create memories. When you’ve spent your childhood there or spent years customizing and renovating it just the way you want, there is a lot more in that home than just dollars. Realtors usually have the hard job of helping people let go of a home they love to find one that better meets their needs at different seasons in life.
In the end, homeownership offers considerable benefits – from financial to social and everything in between. And we didn’t even go over the benefits from a community perspective. Both renting and owning have their pros and cons, and you’ll have to decide which is right for your particular situation in life. Between inflation and interest rates, owning a home has become more difficult, but it is still a rewarding goal worth working toward.
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