What Homeownership Means For You
June is National Homeownership Month, meaning it's the ideal time to reflect on how powerful owning a home can truly be. When you purchase a house, it becomes more than just a place to lay your head. It’s an investment in your local community.
If you’re thinking about buying a home this year, here what you need to know.
The Financial Gains
Find Your Financial Footing
Homeownership is one of, if not the best, way to improve your long-term financial position. Not only will you have a stable monthly home expense that can benefits your budget immediately, but you’ll also gain equity as your home value appreciates. As home loan comapany, Freddie Mac says:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
Build Your Wealth
As a homeowner, your ever-growing, and in Hawaii, fast growing equity builds your net worth. When you look at the net worth of a renter versus that of a homeowner, it is beyond evident that owning a home truly offers a great way to build your long-term financial position.'
According the the National Association of Realtor's (NAR) latest data, the median household net worth of a homeowner is approximately $300,000, while that of a renter's is only about $8,000 - 40 times less than that of a homeowner.
The Emotional Rewards
Show Off Your Taste
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.”
Knowing that can lead to a powerful, subconciousm emotional connection to where you live; meaning your home will grow with you. Even better, because the place belongs to you, you have the freedom to make the updates you need and please your own tastes. As Logan Mohtashami, Lead Analyst for HousingWire, says:
“The psychology is that this is yours and you’re going to make it as good as possible because you’re in for a long time, . . . “
Enhance Your Neighborhood
Owning a home will lead to an increased involvment in your local community. Settling your roots in a location will naturally make you want to do what you can to preserve and improve it; just like your home. In a recent report, the NAR says:
“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”
Homeownership is a way to you to build financial freedom, and gain greater satisfaction along the way. If National Homeownership Month has you dreaming about purchasing a home, then let’s connect to begin the process today.