The average price of a home sale in the United States has gone up leaps and bounds since our parents’ generation, with house values many multiples higher than the original purchase price leaving our generation in a tough position when it comes to buying houses for ourselves. The cost can be so overwhelming and staggering that many people in our generation are considering forgoing homeownership entirely, but this can have severe consequences, both financially and personally. Owning a home is not for everyone, but it may be right for you. Here are three benefits of owning your home rather than renting.
The Benefits of Owning Your Home: No More Rent Increases
The first benefit of owning your own home is knowing that you will never be subjected to another rent increase again. It is not uncommon for your landlord to raise your rent every year as the market rent increases with inflation. However, the legally allowed rent increase is higher than simply the cost of inflation. When you own your home, your mortgage payments will not change over the course of your loan, unless you have other circumstances. Knowing exactly what your housing costs will be and they won’t go up brings great peace of mind.
Another major benefit of owning your own home is the ability to build equity in your home and grow your wealth. Homeownership has been and still is one of the best ways for average people to grow huge amounts of wealth. Building equity in your home by paying off your mortgage will give you financial freedom as well, as you can borrow using your equity as collateral. You can get a loan equal to 85% of your home’s equity. Owning a home gives you these options to build ownership of an asset that will appreciate in value.
The Benefits of Owning Your Home: Your House, Your Rules
The final benefit of owning your own home is that since it is your home, you get to set the rules. No more asking landlords for approval for a pet or limiting the length of stay that a guest is allowed to stay with you. Owning your home also means that you are in control of maintenance and repairs, which can mean you get problems handled much faster than you are used to.
Homeownership may feel out of reach. But homeownership comes with so many benefits that the rising costs of homeownership shouldn’t deter you. Know these three benefits of homeownership and start looking for your first home today.
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Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.