6 Benefits of Owning a Home
- Home Buying Tips
- Friday, July 17, 2020
Have you thought about home ownership, but have held back because you’re concerned about the responsibilities and risks associated?
It’s normal to feel nervous about moving from renting to owning – after all, it’s a big change. That’s why we recommend all first-time buyers to do their research first, like reading through our First Time Home Buyer Guide.
But when you break down the overall price of the home into regular, manageable mortgage payments, the cost of owning can be more feasible than you think. Plus, there are several long-term advantages to owning that will outweigh the short-term convenience of renting – which we’ve outlined below.
1) Always Earning Equity
One of the advantages of owning a home is building equity. Equity is the portion of the house that you (as the owner) have already paid off, or the difference between the home’s value and owner’s total debt to the mortgage lender. The more you pay down your mortgage, the more equity you have. Think of paying your mortgage as a form of savings.
2) Ability to Borrow Against Your Equity
In addition, home equity means more borrowing and purchasing power. You can borrow against this equity for a second mortgage or a line of credit. This gives you more flexibility for things like home improvement or buying large consumer goods such as cars, boats, etc.
3) Stable Monthly Payments
When buying a home, the most common mortgage product used is a fixed rate mortgage – which means stable monthly payments. When you rent, on the other hand, you can never be sure what the rent amount will be year to year. Owning allows you to maintain stable payments which gives you peace of mind.
4) Creating Wealth For Your Future
While there are a lot of upfront costs and fees included with home ownership, such as the down payment, appraisals, insurance and maintenance costs, in the end your mortgage payments are usually less compared to renting the same home. Plus, every payment you make goes towards building your equity!
5) Appreciate in Value Over Time
Although the housing market will fluctuate from time to time, the value of the house will more than likely increase over time. And when you’re ready to sell, you will be able to benefit from the equity you’ve built up in your home.
6) Pride of Ownership
The best part of all! When you own your home, you have the freedom to do whatever you want. Want pets? Go fetch ‘em. Want to paint the walls florescent pink? What a bright idea! Want to change the carpet to hardwood or hardwood to carpet? Do both. Home ownership will grant you the ability to truly make the place your very own.
Have questions about the points we mentioned above, or want a helping hand in starting your home search? As always, feel free to reach out to one of our Trico Home Experts for some friendly assistance!