It has become a cliche for Realtors to speak of homeownership as "The American Dream", but Americans themselves appear to agree. According to a recent survey, three-quarters of Americans say owning a home is a higher measure of achievement than a successful career, raising a family, or earning a college degree. Obviously becoming a homeowner is a pretty big goal for many people and offers much more than simply providing you a place to live. In fact, there are many benefits of owning a home, some of which aren’t immediately apparent. If you’re considering making the leap into homeownership this year, then these are some of the advantages that you’ll get when you do.
Protects you from inflation
One of the lesser-known benefits of owning a home is that it can shield you from the effects of inflation. This is critically important right now as we’re all feeling the pinch of rising prices. When you rent a home during a period of inflation, your monthly rental prices will likely increase to keep up with inflation. But when you own a home and have a fixed-rate mortgage, your monthly payments will remain the same. That can make a huge difference in your monthly expenses.
Helps you grow your wealth
Owning a home is one of the best ways to grow wealth. Your home is a financial investment and is one of the best ways to improve your long-term financial health. As you build equity, you are building your net worth. In addition, although the real estate market may fluctuate in the short term, real estate always increases in value in the long term. The longer you own your home, the more wealth you can build. In Houston, the average home price has increased by an average of 6.47 percent per year for the past 10 years.
Leads you to more community engagement
When you own your home, you have an investment in your community. That’s why homeowners tend to be more involved in their communities. When you engage more in your local area, you are helping to improve it, making it an even more attractive place to live. Homeowners often have a sense of pride not only in their own homes but also in their wider community. And that engagement can even help to boost home values in your neighborhood, making it a winning situation all around.
Gives you an emotional boost
Your home reflects who you are – your tastes, your likes and dislikes, and your priorities. Our homes are often our sanctuaries, which was even more obvious during the pandemic. They are our safe havens, our places of work, and where we relax and enjoy ourselves. Most homeowners have an emotional connection to their homes and derive pleasure from that ownership. You have the freedom to improve it, make changes as your tastes and needs change, and share it with those you love. Your home is not only a financial investment, but it’s a place where you make memories, start families, learn new skills, and become more of who you are.
The bottom line
Owning a home has so many financial, social, and emotional benefits. That all being said, you need to make sure buying a home is right for you. Timing your home purchase is particular to you and the location where you want to buy. If you need help weighing the pros and cons, feel free to reach out to Norhill Realty. We're happy to talk through the process and give you straightforward advice about the current state of the market.