To many, the idea of owning a home signifies the fulfillment of the American Dream. The desire for owning land and a place of your own dates back to the frontier days. In a recent NAR survey, 75% of non-home owners reported that homeownership is considered a part of their American dream (source). It is a milestone that many are anxious to meet, but there can be several factors that interfere with this dream. Poor credit, short-lived employment history, and lackluster down payment funds can serve as a barrier between you and your dream home. In addition, there is the argument that homeownership comes with unwanted responsibility and disadvantages. Despite the obstacles that can delay or prohibit home ownership, there are plenty of advantages to being a homeowner in 2019.
- Greater privacy– You don’t have to share a building with other tenants like you do when you rent an apartment, and you are not subject to landlord visitations
- Decorative Freedom– You are free to decorate how you see fit: paint color, wallpaper, fixtures, flooring, cabinetry, backyard design, etc…
- Tax benefits– You can typically deduct the interest on your mortgage and property taxes; helping you to offset a fraction of the cost of owning your home
- Predictable payments– Your monthly principal and interest payments stay the same the entire length of a fixed-rate mortgage. Unlike renting, where it’s common to see a rise in rent each year, owning allows you to have a locked-in mortgage rate.
- Build equity- Homes tend to rise in value and loans that are paid down begin to strengthen your equity in the house. In turn, this can create financial security for your family. You can use it towards the purchase of a new home, towards retirement, or a second mortgage.
- Place roots- Buying a home equates to settling down in one area for several years (normally). The burden of packing up and moving from place to place becomes less of a possibility when owning a home. It allows you to build ties within your community and with your neighbors.
Benefits Relevant to This Year
According to U.S. News, “While interest rates are rising, housing prices are expected to stabilize, offering additional affordable options to first-time-homebuyers.” The ways in which credit is checked against a mortgage will be changing with the launch of UltraFICO. UltraFICO offers an adjusted score based on factors like your bank account balance and history. This new information can be used to supplement your traditional credit report information (source). This change is going to open up more doors to mortgage accessibility to those who may have not otherwise been qualified.
Below, is a helpful graphic illustrating some of NAR’s findings regarding the benefits of home ownership (source):
Home ownership continues to be a goal for many Americans. 2019 will bring some changes to the real estate market; the effects have yet to be seen. Buying a home is made less stressful with the help of a seasoned and skilled realtor. It is a monumental step, an achievement, that should be carefully considered and entered into with the help and guidance of a reputable realtor. There are many perks that come with being a homeowner. If you’re interested in taking the step towards home ownership, contact a local realtor today.
Your Neighborhood Expert,