If you’ve ever expressed interest in owning a home, you’ve likely heard opposing arguments around whether it makes more sense to rent or buy. Despite what you may have heard, one thing holds true: real estate is one of the most stable investments one can make.
Let’s be clear: home ownership is not for everyone or every financial situation. You will need to make this commitment based on your personal financial position and future goals. However, if you do decide to move into home ownership, there can be many benefits.
Here are my top 3 reasons to consider homeownership:
1. Build Equity, Build Wealth
“Generational Wealth” is quickly becoming a buzz phrase across social media and a burning desire for many people. So, what does it mean and how do you get there? Generational wealth refers to assets passed down from one generation to the next. If you can leave behind a notable inheritance to your descendants, that constitutes generational wealth; and purchasing a home is the number one way to begin accumulating those long-term, transferable assets.
For many families, homeownership serves as a form of ‘required savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your home. We’ll discuss equity in much more detail in a later blog article, but understand that the net worth of homeowners is about 40 times greater than the net worth of renters. On average, the net worth of a homeowner is approximately $194,000 while the median net worth of renters is $5,400.
2. You’re Probably Already Paying a Mortgage
Many renters don’t realize that they’re paying enough to cover the mortgage for the property they reside in. Most are even paying additional expenses such as property management fees and capital expenditures (funds to cover potential maintenance costs). Even if you live in an apartment community, you’re paying a piece of the total mortgage and may be able to afford your own home. It turns out, renting can sometimes be more expensive than purchasing your own home. Additionally, rents are growing at a faster pace than wages across the country, meaning renting will continue to get more expensive. In fact, Winston Salem, NC saw a 22.5% year-over-year increase in average rents as of October 2020 and was among the top 10 cities for largest rent increases in the nation.
3. Improve Your Mental Wellbeing
Sure, we’ve all heard that it’s a dream come true to own a home. But we don’t say enough about how being a homeowner can affect your mental and physical wellbeing. Especially today, when we’re spending more time at home than ever, there’s something to be said for the peace and freedom that come along with living in a home you love. Not to mention, it’s your property and you can do what you want! So, paint that orange wall, replace the floors, and build that intricate shelving unit you found on Pinterest… whatever allows you to create a space that brings you joy! The sky’s the limit!
It’s my goal to help you get into a home you love. If you’d like to learn more about becoming a homeowner and the purchasing process, please contact me or check out my Free Homebuyer Guide! Feel free to reach out to me!
Paris Williford | REALTOR ®, Broker
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