Homeownership is still the goal that motivates many of us to get up in the morning and put in a hard day’s work. However, developments in recent years have caused many people to question if such a goal is still worth pursuing. We are talking specifically about developments in the residential real estate market.
According to a detailed analysis of the housing market conducted by RenoFi, house prices in the United States have increased by 48.55% over the last decade. The site also notes that the average price of a home is currently $257,000.
There is no getting around the fact that home buyers are being asked to make larger investments these days. Even so, one can argue that such an investment remains more than worth it. Discover why homeownership still wins in the long run by reading the rest of this article.
The Benefits of Homeownership
The benefits of homeownership are remarkably varied. Owning a home is good for your finances, safety, and mental health.
How does homeownership yield so many benefits? The reasons detailed below explain why.
Homeowners Have Assets That Are Continually Appreciating in Value
Let’s start with the most obvious benefit of homeownership. As the introduction mentions, house prices have increased consistently over the last ten years. That trend is unlikely to change anytime soon.
Going back to RenoFi’s analysis, the site projects that house prices will climb to an average of $382,000 in 2030 from where they currently stand. Focusing on Rhode Island specifically, RenoFi predicts that the average cost of a home in the state will end up at $411,073 around that time.
You must make a sizable investment to purchase a home right now, but the appreciating value almost assures a fantastic return. Whether you plan to stay in your new home long-term or eventually sell it, you will have a terrific asset in your portfolio that will continually accumulate value.
Homeowners Can Build Equity
Paying a monthly mortgage is a chore. However, there is an upside to completing those payments.
Each mortgage payment you complete helps build your home equity. Consistently pay your monthly mortgage bills on time, and you will increase your actual ownership stake in your home. You can then leverage that equity for other purposes.
Refinancing your current mortgage can turn your home equity into cash. Use that cash to buy a new car, pay for home improvements, or even cover the down payment on a new property.
Instead of saving for years to make another major purchase, you can simply use your home equity to fund your plans.
Homeowners Can Make Money from Their Rental Properties
After taking ownership of an inherited property passed down by your deceased parents, you can now call yourself the proud owner of two homes. Now that you have two homes, you can turn one into a vacation property. It is nice to have that additional property available to take a break from your everyday life without paying for a hotel stay. Then again, you can also turn that additional property into a source of income.
Remove some of the items with sentimental value in one of your homes and work on turning it into a rental property.
You do not need to own multiple properties to consider taking on tenants. If you have a large home with at least one spare room that can serve as a comfortable living space, you can also offer that as a rental unit.
Homeowners can do as they wish with their spare properties and rooms. That is another perk of homeownership you should consider as you weigh the pros and cons of moving forward with a purchase.
Homeowners Can Enjoy a Private Residence
True privacy is not a privilege afforded to everyone. If you live in a rental property, you may not enjoy complete privacy because tenants reside in nearby units. In some cases, a landlord may rent out a single home to two or more tenants. You may sacrifice your privacy to stay in that property if no other units fall into your price range.
Your co-tenants may not be the only ones preventing you from enjoying a private residence. Every now and then, your landlord may drop by to check on their unit. Dealing with them will be a regular part of your life as a tenant.
Homeowners do not need to worry about those privacy issues. A property owner can open or close their door to anyone they please and maintain their preferred level of privacy.
Homeowners Can Feel Safer in Their Private Residence
Maintaining your preferred level of privacy is not solely about shielding certain parts of your life from public view. Maintaining privacy is crucial for many homeowners because it is a safety issue.
Even if you spend time getting to know your co-tenants and landlord, you are unlikely to discover who they truly are. You may not be aware that someone with access to your home also has violent tendencies. Upon learning that fact, your only recourse may be to move out of the rental unit.
You do not need to live with compromised security as a homeowner. Set up whichever security system you prefer and keep all intruders at bay. Installing a security system is only one of the things you can do to keep your home safe. Explore all available options to bolster your home security and enjoy greater peace of mind in the process.
Homeowners Can Install Their Desired Upgrades
We noted in the previous entry that you can install whichever security features you want as a homeowner. Of course, you do not need to stop at security features. Go ahead and install solar panels and new fixtures if you wish to make your home more efficient. You can even change your home’s layout and install new decorations to complement it.
The point is you have complete control over what your home becomes as a residential property owner.
Tenants may be able to make changes to their homes, but they must clear things with their landlords first. As a tenant, you may need to delay installing a sought-after upgrade until you hear back from your landlord. It is an annoying obstacle you will face whenever you want an upgrade. Homeowners do not worry about that.
Homeowners Have Stable Living Situations
Now that you have stayed in the same apartment for years, you can enjoy a sense of stability that you imagine is on par with what a typical homeowner experiences. Unfortunately, the relative stability of your current living situation may be rocked by forces entirely out of your control.
With the landlord’s college-bound child set to enter a university in your area, your unit may suddenly be in jeopardy. Your landlord may decide to give your unit to their child at the end of your lease. Sadly, retaining your apartment may no longer be an option at that point.
This scenario is not particularly common, but it is not something you can dismiss either. If your living situation adheres to the whims of someone you do not know, it is hard to feel stable.
You can only enjoy true stability by purchasing and moving into a home. As long as you can keep up with your mortgage payments, your living situation will always be stable.
Homeowners Are Less Stressed
Think of the homeownership benefits we’ve already highlighted in this article. Looking beyond the financial incentives of homeownership, you can also enjoy better privacy, security, and stability. On top of that, homeowners can change their properties however they see fit.
Given those benefits, you cannot be surprised that homeowners generally deal with less stress. After surveying members of the general population, 66% of respondents to the National Housing Survey said that having less stress is one of the benefits of homeownership. Even if you narrow the field only to renters, you still have 60% of respondents saying homeowners have less to worry about.
We are not saying that homeowners are not stressed out, but they generally have fewer home-related concerns compared to tenants. Purchasing a home should be part of your plans if you have long dreamed of a less stressful life.
Homeowners Do not Always Pay Exorbitant Prices
You have read about the many benefits of homeownership, and you cannot deny their appeal. Even so, homeownership may still be something you view as an unattainable goal due to the costs involved. Renting may not be your preferred option, but it may be what you can afford at this point.
Before you dismiss the idea of homeownership, consider contacting a realtor. Reach out to a real estate agent in your preferred home city and ask about the available properties. Make sure to mention your budget, so that they can focus specifically on homes in your price range.
Experienced realtors can consistently find good homes with affordable price tags. Once you have settled on a property you want to purchase, your real estate agent can help you negotiate a better price.
Homes are expensive, but your realtor can help turn them into more reasonable purchases. Are you looking for a reputable realtor in Rhode Island? If so, we at RI Home Store want to offer our services. Contact us today and allow us to help you find your ideal property!