There are obvious reasons to buy a house. Interestingly, there are a number of fantastic secondary benefits of owning a home that most renters are not yet aware of.
Not least, of course, is that you have somewhere to live. But there are a number of other upsides that are considerably less apparent, and they aren’t all about money. Here’s a great piece from Peter Morgan at The Mortgage Reports that outlines a few of them….
Buying A House Is Generally A Fantastic Investment
The U.S. Census Bureau has a table of historical home values on its website that starts in 1940 and ends in 2000. It uses constant year-2000 dollars for all figures to account for inflation.
Home Ownership Gets Easier Over Time
Paying your mortgage over time means you’re building equity each month. An asset you can sell or borrow against in the future.
Although, when buying a house for the first time, there can be a little financial strain. You have to come up with a down payment and cope with unexpected homeownership costs. You may feel the pinch for a few years.
But gradually things get easier, trust me on that!
Build to Your Tastes, Not Your Landlord’s
Do you want a bunch of pets? Does taste in decor matter to you? Do you like walls painted in crazy shades of pink, or do you spend your weekends tearing apart engines or woodworking in your shop?
No problem. When you own your own place, there’s no landlord to tell you those aren’t allowed.
Improve Your Credit Score
Buying a house can improve your credit score, especially if you don’t have a long credit history or many installment accounts. That’s because your mortgage –provided it’s managed well — helps drive up your credit score by showing you are a responsible borrower when you make your payments on-time and consistently.
Wealth Accumulation via Forced Savings
You can view the equity you build in your home as you make payments every month as a type of saving. Unlike renters, you’ve no choice but to increase your net worth. The Harvard University Joint Center for Housing Studies confirms this. In fact, on of their studies showed that homeowners acquire 46 times as much net wealth as renters.
For every $1,000 accumulated by non-homeowners, those who own a home acquire $46,000.
Benefits for Your Family
The National Association of Realtors (NAR) website links to studies and reports that make some pretty extraordinary claims for the benefits of homeownership, including:
- Better mental and physical health
- Improved community engagement
- Higher educational attainments for the children of homeowners
Of course, you have to choose to involve yourself in your neighborhood, and to support your children’s efforts.
Contact your Realtor or Mortgage Lender for more!
The views expressed are my own and do not necessarily reflect those of American Financial Network, Inc.
