Why Homeownership vs. Renting
Home ownership plays an important role in our families, our communities, and our economies. And while not everyone has the ability or desire to own a home rather than rent, many Americans do – and for some reasons that may surprise you.
According to the Fannie Mae National Housing Survey, the top three reasons Americans find value in owning a home have nothing to do with the financial benefits of home ownership. Rather, the top personal benefits of homeownership include
- 91% – feel secure, stable, or successful owning a home
- 70% – feel emotionally attached to the homes
- 51% – call homeownership a “key part of their life”
There are, however, financial benefits to owning a home over renting, as well. A majority of Americans believe that homeownership has led to them being better off financially and has contributed to their ability to build wealth.
Why Homeownership Matters
Owning a home may be cheaper than renting long-term.
Securing a mortgage with competitive rates and a predictable monthly payment gives you control over monthly expenses.
Ownership helps you to build equity.
By paying down your mortgage each month, you are building equity in your home. This means when it comes time to sell, you can turn that equity into a profit, or even without selling a home equity loan allows you to borrow a certain amount of money to finance other projects or cover unexpected expenses.
Owning a home is an investment.
By building equity in your home, you also are increasing your net worth. And in today’s market, it is an investment that will likely appreciate over time. While there are some fluctuations in the housing market at times, over the long term a majority of homeowners make money during the sale of their homes.
Helps to build a sense of community.
Buying a home encourages you to get to know your neighbors and get involved in local affairs. There’s a sense of belonging and a sense of pride that comes with being a homeowner alongside others in your community.
An opportunity for tax deductions.
The interest you pay on your mortgage, insurance premiums, property taxes, and even improvements to your energy efficiency may provide an opportunity for tax deductions.
Allows you to make it your own.
Owning your home means you can adjust it to your liking — you can build, tear down walls and design the home of your dreams.
If you decide that buying a home is the right move for you, contact Ohio Real Title to help you prepare to close on your new home and secure what is likely your greatest investment.