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June 30, 2022What Is Usually an Advantage of Homeownership?
There is a reason owning your own home is known as the American dream. It’s the culmination of years of hard work and saving money. It’s all worth it, though, once you close and move into a house you own. Then, you begin to realize all the joy a house can bring. What is usually an advantage of homeownership? Let’s answer that question right now!
Table of Contents
- How Many People Own Their Homes?
- What Is Usually an Advantage of Homeownership?
- Understanding Equity
- Homeownership Allows You to Plan for the Future
- Enjoy the Joys of Homeownership at Rivington
How Many People Own Their Homes?
The National Association of Realtors (NAR) tells us that at the start of the 20th century, less than half of Americans owned their own homes. This continued until after WWII. All of those returning soldiers and their wives moved to their own houses in the suburbs and homeownership exploded!
The rate saw a positive trend all the way through the rest of the millenium. The homeownership rate peaked in 2005 at nearly 70 percent, then wavered a bit during the 2008 recession. Currently, over 60 percent of Americans own their own homes. If you’re not yet included in this number, you’re missing out!
What Is Usually an Advantage of Homeownership?
Owning your own home represents stability, financial success, as well as the opportunity to stay and enjoy the community you love. If you have children, you know exactly where they will grow up and go to school. If you don’t have kids yet, you know you’ll have a home large enough to welcome them one day. If that stage of your life is over, you have peace of mind that you’ll retire and age in a safe, healthy environment.
Understanding Equity
These are all social. Perhaps the most obvious benefits of homeownership fall in the financial realm. As you pay off your mortgage each month, you will be building equity in your home. Equity is the amount of value you have in a given asset, in this case your house. By building equity in your home, you are setting aside money for your future.
Your future finances depend on thinking long-term now, not later. Home equity contributes to retirement savings for many Americans. As your property increases in value, so does your equity. This allows you to sell for a profit in the years to come. You could live in your home for a few decades as your family grows, then sell for a large profit and downsize when the kids move out.
Homeownership Allows You to Plan for the Future
When you own a house, you will always be certain of the monthly payment you will need to pay. Renters are faced with the uncertainty, knowing at the end of their lease their landlord could and often does decide to increase the rent.
Among other things, inflation affects the price of rent. According to Apartment Guide’s annual rent report, the national rent average increases by 4% each year. Those who own their home can better budget and plan, knowing their mortgage will be the same today, next Monday, next year, and 10 years from now.
Enjoy the Joys of Homeownership at Rivington
What is usually an advantage of homeownership? Everything listed above, and so much more. In fact, there’s far too many advantages of homeownership than we could list in one article. You get tax breaks, you’re statistically healthier, and the list goes on!
If you haven’t yet made the leap because you’re worried about the financial aspect of it, this is understandable. Buying a new house in DeBary is a significant investment up front. We encourage you to remember that it represents the opportunity to build wealth and create long-term savings.
