The Effects of Homeownership on You
June is National Homeownership Month, and it's a great opportunity to think about how important it is to own a home. When you buy a property, it becomes much more than just a place to live. It's your investment in the community and a location where you can leave your mark.
If you're considering purchasing a home this year, these are some of the advantages you'll enjoy.
Homeownership Has Emotional Benefits
Owning a home can provide you with a sense of pride and enjoyment in a variety of ways since it is a place that is entirely yours.
Your personal tastes and personality can be reflected in your home.
This is how Investopedia puts it:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.”
This information might lead to a strong emotional attachment to where you reside. But so can the knowledge that your home will change as you do. You have the freedom to adjust it as your needs and tastes evolve because it's yours. As HousingWire's Lead Analyst Logan Mohtashami puts it:
“The psychology is that this is yours and you’re going to make it as good as possible because you’re in for a long time, . . . “
As a result, you may have a stronger feeling of ownership, pride, and connection to your home and neighborhood.
It Has the Potential to Improve Your Community and Civic Engagement
Homeownership might encourage you to become more involved in your community. After all, you're setting down roots in a place and, like your house, will want to do everything you can to help enhance it. In a recent report, the National Association of Realtors (NAR) says:
“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”
Homeownership Has Financial Benefits
You're also making a financial decision when you decide to become a homeowner. This is because your home is an investment as well.
It might assist you in feeling financially secure.
Homeownership is unquestionably one of the most effective strategies to enhance your long-term financial situation. You'll acquire equity when your home rises in value and you make your monthly mortgage payment, not only because you'll have a regular monthly housing bill that can help your budget in the short term. As Freddie Mac puts it,
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
It is capable of increasing your wealth.
As a homeowner, you can increase your net worth by increasing your equity. When you look at the difference in net worth between a renter and a homeowner, it's evident that owning a home is a fantastic way to improve your long-term financial situation.
According to the most recent NAR data, a homeowner's median household net worth is around $300,000, while renters' median net worth is only about $8,000. A homeowner's net worth is roughly 40 times greater than a renter's.
Homeownership is a terrific method to increase your contentment and happiness while also increasing your financial freedom. If National Homeownership Month has piqued your interest in buying a home, contact us today to get started.