With bad press about home foreclosures and other homeownership issues, many are ambivalent at best about purchasing a home. We still think that owning a home is a one of the best things you can do in your life. Realty Times compiled a great list of reasons why, which we summarize here:
1. Equity. Every month, your rent check goes directly into your landlord’s pocket and out of yours forever. While purchasing a home certainly costs a chunk of money in the way of inspections, a down payment, etc., that money will be back in your pocket in time. Historical trends show that home values rise by four to six percent each year– there are many areas in which homes have continued appreciating as so. Meanwhile, experts say that places in which the housing market has been hit harder by the recession will see recovery. Owning a home is ideally a long-term investment. For instance, homes purchased in the year 1960 probably go for ten times that price in the modern market.
2. Relationships: Renters generally experience a less stable flow of neighbors moving in and out. Leases range anywhere from a month to a year usually at most, which means tenants come and go pretty easily. Similarly, there a typically not as many social spaces in apartments complexes where neighbors can congregate. On the other hand, most homeowners get much cozier and settled in, thus building relationships that outlast several years. In order to simply regarner their initial expenses, homeownners must stay put for at least three to five years. Healthy, stable relationships lead to a much more contented lifestyle for most. Not to mention, homeowners have yards, clubhouses, community pools, walking trails, and several other places where they can meet and socialize.
3. Predictability: The options of having a fixed-rate term on the mortgage allows for predictability. As so, the amount you pay remains the same throughout the entirety of the term. If you pay $700 each month right now, then you will pay that each month ten years from now, too. This makes building a budget and fiscal plans a much easier and stabler task. With the sub-prime crisis, many people who paid an adjustable rate mortgage on their homes faced spikes in their monthly payments. However, with a fixed rate, owning a home allows planning out major expenses and thus the rest of your financial life doable.
4. Ownership: Simply put, homeownership means owning a home. An obvious statement, sure, but one that means some serious benefits. Homeowners may customize their spaces to their particular preferences. They have the opportunity to virtually create their dream homeswithout answering to anyone, really (except, of course, the Home Owner’s Association, which tends to be more lenient than a landlord). As a homeowner, you can construct your own landscape, splash your walls with your favorite colors, and renovate every corner of your home based on what you personally like. While homeowners have near full control of personalization in their spaces, renters have to deal with the boring, cookie-cutter decor so often put into units to please the widest range of people possible. Landlords are also less likely to update the spaces they rent out for decades, leaving their tenants stuck with outdated places.
5. Great Deals: It’s a buyer’s market right now, with interest rates as low as ever, by up to a whopping two percent in some cases. People who buy homes today will see major savings. The cost of real estate has taken a nose dive with the economy’s downturn, making it easier than ever before to purchase a house. People with reliable incomes and some cash to make a down payment should meet with a local real estate agent to talk about the possibility of buying a home in your city that could work well for them.