2021 through early 2022 blurred the reasons why owning a home is good. While record home appreciation is a nice plus, it was an anomaly and it’s time to get back to the basics of why owning a home is a positive.
Owning a home provides security. You own your domain and create a home that can be passed on to future generations. Even if you sell and buy a new home at some point that home will help provide security for generations to come.
On the other end of the spectrum, renters are at the whim of the landlord/property owner. Their security in the home lasts only through the end date on the most current lease agreement.
Pride of Ownership
As a homeowner, you can call your house a home. From having the pets you want to upgrades and your preferred landscaping – it is all your choice. Homeowners take pride in making their home unique.
Renters on the other hand are limited and rarely can they make improvements to a home they are renting. In addition, there are limits to things like having certain pets.
The 3rd and final reason to own a home is to build wealth. For obvious reasons, this has jumped to the primary reason to own in the past 2 years. However, it is just 1 of 3 and all carry the same weight in a traditional market.
Building wealth via home ownership comes in the form of equity gain as well as tax benefits. This combination adds up to a substantial plus to a home owner’s net worth over time.