The Emotional and Practical Benefits of Being a Homeowner

Most people people will just tell you that buying a home is a smart investment and will not provide much more information than that. There are many benefits to it outside of the financial and stability perks. That also does not take away from it’s drawbacks and occasional lack of flexibility in the event the market is in distress.

The most obvious benefit to owning your home is that you have a place to live that is all your own. You can do whatever you want with it and you don’t have to worry about a landlord telling you what you can and cannot do. If you want to paint the walls or put in new appliances, you can do so without asking for permission. You also don’t have to worry about your rent going up unexpectedly by 30 percent because of market adjustments. I’ve been there, it’s one of the worst feelings. Even if inflation is high or supply restraints are causing the prices to increase, you no longer have to deal with the extreme volatility that the renters market experiences.

Another big benefit is that, over time, your home will likely increase in value. This can provide you with a nice nest egg to tap into later in life, whether you want to downsize and use the equity to buy a smaller home or you need the money for other purposes, such as medical bills or retirement. Plus, if you ever need to sell, you can likely expect to make money on your investment (try not to sell earlier than 2 years from the time of purchase, there are tax benefits to waiting 24 months). I’ve never heard anyone complain because they have additional equity or finances in their life. That typically makes life a bit easier. “Oh no, I have more money and equity than I expected. This really wasn’t what I was hoping for.” Nope, cannot say I have heard anyone mutter words like that before. Maybe once in third grade when my friend wanted to give me his allowance money because he didn’t want it. That idea didn’t last long when the parents found out.

Of course, there are also some drawbacks to owning a home. For one thing, it’s a lot more work than renting. You’re responsible for all the upkeep and repairs, which can be expensive if the home you purchase is older and has not had any recent updates. And if something major goes wrong, such as a roof leak or a broken furnace, you’ll have to pay for it yourself. No more contacting maintenance or the landlord and having them come fix the problem. I’m going to miss you Jerry, you were the real MVP.

Another potential downside is that if the housing market takes a turn for the worse, you could end up owing more on your mortgage than your home is worth. This is known as being “underwater” on your mortgage, and it can make it very difficult to sell your home or refinance your loan. That is why if you do not plan on staying in an area more than 2 years, it may not make sense to purchase a home.

So, as you can see, there are both pros and cons to owning a home. It’s important to weigh all the factors carefully before making a decision. And remember, even if you do decide to buy a home, you don’t have to do it right away. Renting can be a perfectly good option, especially if you’re not sure you’re ready to take on the responsibilities of ownership or plan on residing in an area for very long.

At the end of the day, everyone’s needs and wants are different — which is why owning your own home can be so great or renting, depending on your chapter. If you own, you can tailor it exactly to your needs and desires, whether that means having lots of space or being close to downtown. There’s no doubt that homeownership comes with plenty of advantages, so here is a list of a few of them, in addition to some drawbacks:

Standard benefits:

• You’re investing in America’s economy.
• Your home is a stable investment.
• Pride of ownership.
• You’re building equity.
• You have more control over your environment.
• Forced savings plan.

Potential drawbacks:

• Maintenance and repair costs.
• The potential for negative equity if your home’s value decreases.
• The possibility of being unable to sell your home if you need or want to move.
• The challenges of being a landlord if you decide to rent out your home.

Emotional benefits:

• A sense of security.
• You’re taking an active role in securing your family’s future.
• You’re joining the ranks of Americans who have chosen to invest in their homes.
• Homeownership can give you a sense of accomplishment and satisfaction.
• You’re creating a legacy that you can pass down to your children or other loved ones.

Practical benefits:

• You’re building equity in your home, which can give you financial security in the future.
• Your mortgage is likely to be much cheaper than rent, giving you extra money to save or spend each month.
• You have the freedom to make changes to your home to suit your needs and taste.
• You may be able to take advantage of certain tax deductions as a homeowner.

At the end of the day, it’s important to weigh the pros and cons of buying a home before making a decision. For some people, the stability and financial benefits of ownership make it the right choice. For others, the flexibility and lack of maintenance responsibilities of renting may be more appealing, especially if you do not plan on residing in that area or space for very long. Ultimately, it’s up to you to decide what’s best for your individual circumstances. The desire is that these perspectives make that decision for you easier so that you can move forward in confidence, no matter the current chapter that you are in.

*This is not financial advice. For educational purposes only.