Home ownership is one of the most popular and rewarding investments that every individual can make. It provides a sense of security, financial stability, and independence.
The benefits of home ownership are many and varied. However, the above things are generally seen as the biggest benefits, although there are more. Let’s elaborate.
Financial stability:
Home ownership allows you to build equity in your property which provides for a higher net worth. In turn, this gives you more financial options in the future.
Security:
Home ownership allows you to feel safe knowing that your assets are protected by the government or private insurers if something were to happen to your home or business.
Independence:
Owning your own home means that you have freedom over where you live as well as what kind of lifestyle you lead.
Dignity:
Home ownership can provide a sense of stability and belonging that’s hard to find in the current economic climate.
Reasons Why You Should Buy A Home
Buying a home is often one of the most important financial decisions that people make. There are many reasons why you should buy a house, so we’ve compiled this list of some of the benefits to help you decide if buying a home is right for you. For most people, home ownership makes sense, but you decide for yourself.
1) You can save money on rent.
If you’re renting an apartment or house, then it’s likely that your monthly rent is more than your mortgage payment will be. This means that you’ll be paying more in the long run by renting instead of buying. In addition, rent almost always goes up while a mortgage payment stays relatively the same. That 2000 dollar rent payment today will be a 2500 dollar payment before too long.
2) You’ll have equity in your home.
If you buy a house and then sell it after five years, then not only will you have the money from selling the house but also the money from building equity in it. That means that home ownership is a great way to save money and build wealth.
3) You’ll have a place to call home.
If you buy a house, you will always have something that you can call your own. This brings stability and security in your life, allowing you to put down roots. There is no telling when that rental could be sold by the owner, forcing you to move.
What To Look For When Buying Your First Home
When it comes to buying your first home, there are 5 things you should look for when you go home shopping.
1. Location:
Make sure that the location is in a good area with a lot of amenities nearby. Also, be sure to look at local schools, even if you do not have kids. You might want them in the future and even if you do not, it is important for your resale value.
2. Size:
Make sure that the house is big enough for the number of people living in it and who will live in it. While you do not want too much space, having some room to grow is a good idea.
3. Price range:
Make sure that you stay within your budget and try not to overspend on anything too frivolous like an expensive kitchen or a swimming pool that you do not need. if your budget is a mortgage payment of 1800 dollars, stick to it.
4. Room count:
Make sure that there are enough rooms for everyone in your family and guests to have their own room without having to share one space with another person. You might think that you can make things work, but sacrifices can get old over the long term.
5. Features:
Make sure that the house has all the features you need such as central air, security, etc. It is simpler to buy a house that fits your needs than to have to modify one.
Things Not To Do When Buying Your First Home
With all the information available, it can be hard to know what to do when buying your first home. The following are 5 things not to do when buying your first home.
1. Don’t try to buy a house you cannot afford.
This is a common mistake made by buyers. They are approved for a certain amount and they purchase the most house they can get. This might mean that all of your income is going to your home, leaving you none to save or buy any luxuries. It is always better to live a little under your means than above it.
2. Don’t buy in an area with too much competition.
This can lead to bidding wars and over paying for a house. There is always an area outside of the “hot” market that will fit your needs. Just look around and you could end up with a home that meets your needs for less money.
3. Don’t buy a fixer-upper.
Unless you have money set aside for repairs, try to buy something that is turn key. Many people who invest in fixer uppers end up miserable when they realize that the process of upgrading their home will take much longer and be more expensive than they thought.
4. Don’t let yourself get discouraged by the process of buying a home.
A home purchase can be a lengthy project with a lot of paperwork. If you think it might take two months to close, count on three.
5. Don’t make any rash decisions.
Every decision in your home purchase should be logical and made without emotion. Always think about all sides of an issue and to avoid a home loan mistake and, if there is time, sleep on it. Good decisions are easier to make if you give them time.
