You may be thinking, "I don't want to take on the responsibility of homeownership." Or you may be thinking, "It's too expensive and I can't afford it." There are many misconceptions about homeownership. If you're looking for a new place to call your own, here are six reasons why now is the time to fall in love with homeownership:
Reason # 1 - You can do what you want with your home and not worry about getting in trouble!
The house is yours and you can pretty much do what you want! Want to take out a wall? Go for it! Can’t do that on a rental or apartment! But you might want to check that the wall is not load-bearing before you begin, but the decision and the results are all your responsibility! Want to try something you saw on HGTV? Whether a winner or flop, give it a shot. This home is yours, baby!
Reason # 2 - Not only will you not pay rent anymore, but your monthly mortgage payment is fixed for the next 30 years.
If you rent a house or apartment, your monthly rent will likely increase every year or two and will skyrocket over a 30 year period! Lock in your housing expense for your budget planning by buying a house!
Be aware that your county property taxes will rise over time (due to its increase in value -a good thing) and cause an increase in monthly payments. Yet, your interest rate is locked with a fixed-rate loan, so your mortgage portion of your monthly payment won’t change, only the portion we call your "escrow" portion can increase.
Reason # 3 – Make the monthly payments and in 30 years or less your house will be paid off!
Thirty years seems like a long time, but imagine the feeling of paying off your house and having no more payments!! It is such a great wealth-building process! If you buy a $200,000 house this year, in 30 years that same house is likely to be worth twice as much or more, which brings us to #4.
Reason # 4 - The value of your home goes up over time!
The property is worth more than when you bought it! Each year you’re your home is likely to increase in value by 3%-5%! In 2021, homes in the Dayton area saw an increase in value of about 10% or more! Watch your finances grow through homeownership!
We've heard people 50 years of age or old say, "I paid $30,000 for this house 25 years ago. It is now worth almost $250,000!" Time will allow your investment to grow!!
Reason # 5 - Homeownership means stability and peace of mind!
There's no landlord to keep happy or who might kick you out at a moment's notice for being late on rent or for complaints from other tenants. Your home means your control! It is your piece of paradise. Homeownership is one of the most reliable and stable places to invest your money. Wealthy people realize this truth. Real estate outperforms the stock market!
Reason # 6 - Homeownership is an investment that makes you wealthier every year because the equity increases!
As you make payments on your mortgage and as your home appreciates each year, the equity in your home increases. The value of your home minus what you currently owe on the house is called the “equity.” The equity is your money. If you sold your home the amount of money you personally receive is your proceeds or equity (value – mortgage balance= equity).
Many people take advantage of this equity without selling the home by getting a home equity line of credit to pay for home improvements or make other important purchases.
So be proud of yourself for owning a home! The more you understand the benefits of owning a home the more you fall in love with investing in real estate.