Homeownership. It shifts so many things. If you're coming from an apartment, you may experience conveniences like direct-access garages and walls that aren't shared for the first time. If you've been renting a home, you will probably feel a new sense of security and peace of mind once the mortgage is in our name. Not to mention the itch to repaint, re-imagine, and redo at least a few dozen things.
Want to know just how becoming a homeowner can change your life? Read on.
1. Financial Security
"The largest measurable financial benefit to homeownership is price appreciation," said Investopedia. "Price appreciation helps build home equity." Added Real Estate ABC: "The principle you pay on the mortgage is like putting money in the bank, in the form of equity."
2. Peace of mind
If you worry every time your lease comes up for renewal, those days are gladly over. Unless you refinance or take cash out once you have enough equity, your house payment is your house payment.
3. Pride of ownership
The feeling you get when you come home to your place - the place you scrimped and saved for and the place that represents a lifelong dream - well, there's just no substitute.
4. Stake in your neighborhood
Pride of ownership extends to the homes and area around your house as well. Whether or not you move to a neighborhood with a homeowner's association, buying a house will undoubtedly make you more invested in what's going on around you. And that can mean increased property values if neighbors band together for common improvements.
5. Increased interest in HGTV. And DIY channel. And weekends at Home Depot.
Don't be surprised if you start quoting Drew and Jonathan Scott or using terms like "mitered corners" and "refaced cabinets." Which is good news, because the changes you make to your home won't just mean greater enjoyment while you live there, but also potentially greater profit when you go to sell.
"Home ownership means you have free rein in the aesthetics of the home. When renting, you do not have the advantage of changing your environment to please you," said Real Estate ABC. "You may be able to paint a room, but need to repaint back to the original color scheme when you move. Owning your own home means you can do whatever you please to make your environment both personalized and, in the process, add value to the home."
6. Your honey do list may increase
But so will your satisfaction.
7. Tax breaks
"The second largest financial benefit of owning a home is tax savings," said Investopedia. "The biggest of these is the ability to deduct the annual interest paid on a mortgage from income. Private mortgage insurance may also be a write off, on addition to fees paid at closing. If you have paid points, either discount or origination, you can deduct these as well."
8. Expert knowledge of interest rates, neighborhood home prices, and area sales trends
When you're in the process of buying and after you close escrow, you're more likely to be tuned into what's going on in the market and in your neighborhood. This can help you to make smart decisions about updates, upgrades, and refinancing, and can also make you a trusted resource among your friends who want to buy.
9. More financial responsibility in other parts of your life
With a home to take care of, you may be more clued in to other long-term investments and less wiling to spend frivolously.