In many ways, the answer to the question, “Is home buying worth it?” is an entirely personal one. Depending on your unique situation, it may be completely worth it for reasons that are financial or reasons that aren’t. Regardless, it’s something many of us ponder, so let’s answer everyone’s question: Is home buying worth it?
The Statistics for Home Buying
We thought we’d begin with a few cold, hard facts! According to the Federal Reserve’s 2020 Survey of Consumer Finances, “Homeowners have a net worth that is more than 40 times greater than their renter counterparts.” Yep, read that again!
Now of course, this isn’t purely because those people own property. A big part of the insight to take away from this is that in order to successfully purchase a home, one has to get the finances in order. So there you have it—greater net worth! Still, homeownership definitely helps you build wealth over time, since you’re paying yourself every time you make a payment on your mortgage.
And there are many other financial benefits, too! Let’s talk about a few …
You Can Achieve Mortgage-Free Living for Retirement
When you purchase a home, you’re taking a big step toward setting yourself up for the future. Live in it without a payment as a stressor on your savings. Liquidate it to use that equity to pay for other living arrangements. Rent it out to pay for whatever while you live with family. There are so many ways to make the home you own work for you in your older age.
You Can Make Passive Home Income
Pause. Circle back to that one thing we just said: You can rent your home. This might sound like a headache to some, and it certainly does come with its challenges. But you can hire companies to act as your landlord for a price that keeps you pulling in plenty of passive income. This is a great thing to be able to do at any point in life, but again, in retirement, it will essentially keep you receiving a paycheck!
Tax Benefits of Buying A House
Whoop! Who doesn’t love this one? From mortgage interest tax deductions and mortgage tax credit to home sale tax exclusion, there are quite a few ways for your accountant to make the most of your homeowner status come April.
These are undeniably major financial boons! Is home buying worth it? Your wallet will probably say yes! But of course, that isn’t the only aspect of homeownership that makes it worthwhile. Let’s talk now about some of the emotional value in home buying.
You Can Decorate How You Want
While renters can do this to some extent, owning a home opens up a new frontier of design, decor, and even structural renovations. You really can make your home the picture of perfection in your eyes. And that is something most of us crave. Having a home that is ideally attuned to our needs and preferences makes us feel comfortable, safe, and happy.
You Can Enjoy Greater Privacy
It certainly isn’t always the case, being that plenty of people rent single-family homes, but in many cases, renting comes with thin walls and tightly packed neighbors. If you’ve got private yard space as a renter, you’re lucky! For those of us who like room to blare music and run in the grass, host parties, and more without worrying about the neighbors hearing (or being annoyed), homeownership is a game changer.
You Can Have a More Convenient Lifestyle
Sure, you’ll have to pay to fix things that break when you own a home, but if you’ve budgeted for it, that sure beats waiting weeks for the landlord to schedule maintenance! And in most cases, owning a home will grant you access to easy parking, green space to enjoy, more room to invite friends and family, appropriate areas for pets, etc.
All in all, there are many answers to the question “Is home buying worth it?” And the right one for you will depend on many factors unique to your life and lifestyle. But in our opinion, the overarching answer is yes! There are so many benefits, financial and otherwise, to being a homeowner.
If you happen to be looking for the home that will make you one (or make you one again), we have a few we think you’d like to check out! 😉 Learn more about our neighborhood and explore our available homes.