Everyone grew up thinking about their dream home and imagined an awesome marble kitchen or giant balcony overlooking a city’s skyline with an infinity pool to lounge around an soak in the serenity of your life.
Literally everyone has imagined something along those lines.
We all aspire to live a life of happiness, comfort, and freedom. It’s our basic human desires.
Unfortunately, most of us don’t have the ability to purchase a lavish dream home or have the time to float in a pool for hours.
But that doesn’t mean we can’t at least own a home.
Buying a house requires a lot of due diligence on your part. Your finances need to be in order, a real estate agent needs to be contacted. You’ll need to work with a lender and if you’re in North Carolina, the home sellers expect you to provide the attorney.
But at the end of this tunnel, there is a bright light. A super bright light.
It’s the fact that you own a house of your own and have taken a major step towards building wealth and financial flexibility.
I’m about the list the top reasons why you should aspire for homeownership.
1. Home Ownership Creates Wealth
The U.S. Census Bureau reported that 37% of households in the United States did not own their home. The difference in overall wealth between homeowners and renters was a staggering 80% difference.
To provide even further evidence that homeownership creates wealth. Harvard University reported that in the years 1999 to 2013, those who went from renting to owning property had a median gain of $85,400 in generated wealth.
The reason for this increase is due to the fluctuations in the real estate market. Over time, values appreciate (go up). While sure, they will sometimes fall back down, throughout history, values always increase above and beyond their low points.
Just look at the graph below.
Keep in mind, this graph does not account for inflation. However, the housing market does outpace inflation by about 5% on average.
If you’re renting right now. It may be worth at least checking with a lender to see if you can upgrade to owning a home. Not only will you be creating wealth, but it may also lower your monthly housing expenses.
2. Owning a Home Could be Cheaper Than Renting
At first, renting is cheaper than buying. But, over time, due to payments on your mortgage and equity buildup, homeownership begins to pay off and become cheaper than renting.
Trulia has an excellent calculator to pinpoint exactly where renting or buying would be more ideal for you.
Purchasing a home is more expensive upfront due to the initial down payment you’ll need to make, plus, the various closing costs you’ll face.
For the short term, renting makes sense. But, once you start to rent for a longer period, you’ll start to miss out on benefits.
3. Sense of Ownership
There’s no doubt that owning a home is a great accomplishment and can give you a real sense of accomplishment.
Relish the moment that you get to walk inside your new home for the first time. Enjoy the moment you get to fall asleep in your house.
Something everyone needs is a sense of ownership and stability. What better than owning your own property?
Owning a home is a very special feature of life. I wish everyone had the opportunity to enjoy it.
If you’re in the Asheville or Charlotte area of North Carolina, I’d be happy to help you find and purchase a new place.