Advantages of Home Ownership

There are many advantages to buying a house, financial, practical, and emotional. Home ownership lies at the heart of the American Dream and not only provides a means of getting ahead financially, but also directly satisfies essential human needs and wants. America’s economy, a financial sector structured around home-buying, and federal and state tax laws make owning a home financially possible and advantageous for the greater portion of our population

Further, owning a home brings stability to the family unit not only because the home becomes a financial asset, but also because of factors such as choice of location and features of the home, sense of permanence, and experience of belonging to a local community. It is no surprise that making the opportunity to buy a home available to as many people as possible is at the core of American values.

Buying a home makes financial sense from a number of angles: 

  • The desire to own a home makes putting funds aside for the down payment on a house a top priority, thus creating the motivation to save.
  • Once purchased, the monthly house payments stay the same, stabilizing the family budget and protecting it from inflation.
  • A portion of each monthly payment begins to accrue value in the form of equity (the difference between the market value of a house and the amount owed on the mortgage loan). 
  • On April 15, deductions for mortgage interest and various taxes and fees can significantly improve one’s tax situation. These deductions are largest in the early years of the mortgage period, providing greater tax advantage early on, when it may be needed most.
  • Long-term saving naturally occurs as the mortgage is paid off, resulting ultimately in secure housing for later years, as well as a source of financial provision when the house is finally sold.
  • Homes typically appreciate (increase) in value according to Harvard University’s Joint Center for Housing Studies, not only keeping up with inflation but also providing additional financial gain, making a home purchase a wise investment. 
  • As time passes, the equity built in the first home can provide a down payment for a next home as your lifestyle and needs change.
  • One’s Credit Rating improves with regular on-time mortgage payments.
  • The equity built in a home creates greater financial flexibility in the form of a secured loan or line of credit, which can be used for home improvements, purchase of investment property, financial emergencies, or even a special big-ticket item.
The choice of lifestyles is enhanced for the buyer, who gains more choices of where to live by purchasing a home. A healthy sense of permanence begins to grow as time passes and the new homeowner becomes part of a community carefully selected to fit his or her own personality and family:
  • The variety of available neighborhoods and homes is greater for those who are looking to buy. Rural property, suburban neighborhoods, custom homes, homes with offices or workshops, townhomes, condominiums, city flats, etc. are more available to the buyer.
  • Choices large and small belong to the homeowner, from possible remodeling or additions, to landscaping, to paint colors, light fixtures, and doorknobs.
  • Those who want pets are free to have them, and to arrange the home and yard to accommodate for their animal friends.
  • A home office or shop for work or avocation can be more easily found, or built if necessary.
  • Buying a home is likely to provide a greater sense of stability, due to the permanence that comes with being the one who decides what will happen with the property now owned. 
  • With ownership comes a healthy sense of roots as one chooses a neighborhood, develops relationships with neighbors, and participates in community affairs while having a greater stake in the welfare of the area in which one lives.

Home ownership is a big step. To help prepare yourself, we invite you to take one of our classes designed to help you make the best decision for YOU. Click here for more information.