January 21 is “Own Your Home Day” and was established to encourage homeownership. Today, in early observance of Own Your Home Day this post discusses three major benefits of homeownership.
Homeownership is a milestone financial decision. Are you on the fence about whether or not to purchase a home? You're not alone! Purchasing a home is not an easy or lighthearted decision. First and foremost, you need to determine if you are financially ready for this purchase. After reviewing your finances, you can delve into the benefits of owning a home. There are many benefits to home ownership, below you can learn about three of those benefits, including equity, freedom of expression and privacy.
Equity
The greatest advantage of homeownership is arguably the opportunity to build equity. But what exactly is equity?
In real estate, equity refers to the difference between the amount you owe on your mortgage and what your home is currently worth. As a non-homeowner you may be wondering why this is important. Building equity is a long-term benefit and it's pretty easy to do. Consistent and on time mortgage payments help reduce the principal balance, which builds equity. This equity can be used for an array of things, such as home improvement projects or for emergency use. Moreover, if you have children or are planning for little ones, you can also tap into your home's equity to pay for all or part of their college education.
It may take some time to reap the full benefits of home equity, but there's no doubt that the journey is worth it. However, if the chance to build equity is not enticing enough to convince you to purchase your own home, perhaps the following two benefits will tickle your fancy.
Freedom of Expression
One of the disadvantages of renting is the inability to freely decorate your living space. . Although recently Tik Tokers have been sharing creative ways to achieve your ideal aesthetic in a rented space, you still have to be mindful of landlord restrictions. Furthermore, even flexible landlords may still require that you return the space to its original state before moving out in order to recoup your security deposit and to avoid incurring additional charges.
As a homeowner, you can throw all of those restrictions out the window. Outside of HOA rules, if applicable, you can decorate however YOU want to. If you want to have your cake and eat it, too, try incorporating features that will increase the value of your home. These aesthetic changes and home improvements allow for creative freedom and may also build equity. Of course, as a first time homeowner t you won't be able to take out a home equity loan for home improvements projects. However, there are other options for financing, such as home improvement loans.
Privacy
Privacy is another great perk of owning a home, and possibly the most important. Nosy neighbors are not unique to shared living spaces, namely, rentals and apartments. Homeownership can provide the option to purchase a house that allows you to place distance and friendly boundaries between you and your neighbors. Freedom and peace of mind are priceless. For some, privacy may not seem important. However, if you're sharing a space with loved ones, relatives or roommates, things may feel a bit crowded or intrusive.
Moreover, for some communities, privacy is an absolute necessity. Thus, the desire to establish a safe space to retreat to during down time, like after work and during the weekends, is strong. As a homeowner, you can create that sanctuary, while still welcoming the opportunity to get to know your community on your own terms.
Homeownership, while not for everyone, can be quite rewarding. Beyond bringing a sense of accomplishment, it can also help you build equity, give you the freedom to express yourself through décor and ensure a level of privacy that rentership may not provide. If any of these benefits interest you, take some time to determine whether you are ready to buy a home.
*Featured image via Shutterstock
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