Homeownership. It sounds like a serious word, right? Not to mention that it comes with a bunch of other serious words attached to it: Financing. Mortgage. Down payment. Closing costs. It’s enough to make anyone feel a little anxious!
But buying and owning your own home has enormous benefits, even if the process can be a little stressful. As you’re wading through the process of purchasing a home, stay positive by remembering these six benefits of homeownership:
1. Your home is going to help you build and maintain financial stability.
Remember being a kid and saving money in your piggy bank? Think of your home kind of like that. When you own a home, you’re building equity through that home. As you make payments towards your mortgage, that equity increases in value. And if you decide to sell your home, that can pay off big time.
2. Owning a home puts your monthly payments to work.
If you’ve been renting a place to live, then you understand the pain of that monthly payment. And you might be saying to yourself, “If I buy a home, I’ll still have to make monthly mortgage payments—what’s the difference?” While it’s true that you’ll likely still need to set up automatic payments, it’s also true that the money you pay towards owning a home is an investment that can pay off later down the road. Rent, on the other hand, is money that you’ll never see again.
3. Buying a home now can help you avoid a budget crisis later.
Speaking of rent, one of the biggest risks with renting is that your monthly payment could increase. Suddenly your budget is blown, and you could find yourself unexpectedly hunting for new digs. But if you’re making payments towards a home through a fixed-rate mortgage, you can stabilize at least one of your major monthly expenses. With a fixed-rate mortgage, you can lock in the amount of your monthly payment for the duration of your loan—meaning no surprise budget rearrangements.
4. When you own your home, you can customize your space.
Maybe you already knew some of the financial benefits to owning a home, but did you know that there are also emotional benefits? A home isn’t just a place to live, it’s also a space that belongs solely to you—meaning that you can customize it to your heart’s content. Paint those walls, tear up that carpet, convert the basement into your own personal movie theatre. Any home improvement project can help your home feel more customized to your needs, but a recent report from the National Association of Realtors (NAR) shows that making any upgrade (even relatively small ones like painting a room or renovating a closet) can provide homeowners with a sense of accomplishment and satisfaction, as well as increasing how much they enjoy spending time at home.
5. Putting down roots can increase your sense of stability and community.
Moving can provide a fresh start, but what after that sense of newness fades? It turns out, homeownership has long-term emotional benefits as well. Since homeowners are more likely to stay in one place long-term than renters, they’re also more likely to interact with their neighbors and participate in community organizations, contributing to the improvement of the overall area—which contributes to your mental well-being, too!
6. Owning a home can contribute to your positive mental health.
It sounds a little cheesy, but owning your own home really can boost your mental health! A 2021 study by Unison explored how Americans feel about their homes, and found that a high percentage of homeowners overall connected their home with feelings of security, stability, and success. When your basic need for shelter and safety is met, it frees up the mental space to resolve other issues—or to focus on feelings of happiness!
Even when the market is challenging, the benefits of homeownership are indisputable. Your home can help you achieve financial security, it can connect you to yourself and your community, and it can improve your overall well-being. So, what are you waiting for?