National Homeownership Month
As we celebrate National Homeownership Month in June, it is a perfect time to reflect on the impact of owning a home. For those who are fortunate enough to say they own their home, they know it becomes more than just a place of living. Your home becomes your investment, your safety net, your place of family and emotional strength. This is why homeownership is so important, and is crucial to achieving the “American Dream.” For anyone who is on the fence about buying in today’s real estate market, here is why you should strive for homeownership during national homeownership month.
Emotional Benefits Of Homeownership
Owning your home can be much more than just a financial benefit. In fact, most the factors of homeownership come from outside the scope of finances at all. This is because you are in a unique position to make your home to your unique space. Homeownership can give you a unique sense of pride and happiness, as well as a feeling of being fulfilled and satisfied. Homeownership can reflect your own tastes and personalities. Investopedia is quoted saying this:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.”
That knowledge can and should lead to a powerful and emotional connection to the home you are trying own. Another aspect that creates a strong connection is the fact that you grow with the home and all the memories that go with it. You have the freedom to make updates as you need, and changes as your taste changes. Logan Mohtashami, lead analyst of 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, . . . “
National Homeownership Month Financial Benefits
When choosing to be a homeowner, you are taking a leap of fate into likely your largest financial purchase of your life. Your personal residence often times ends up being your biggest financial asset in your lifetime, making it an incentive to buy. Having the ability to make payments for you future allows you to essentially have a savings account inside your place of residence.
Homeownership is one of the best ways to improve your long-term financial position. In fact, most millionaires in the United States own real estate, whether their primary residence or investment properties. During National Homeownership Month should shed light onto the advantages of owning your home. Not only will you be able to predict your monthly housing expenditure, but you will also be growing your equity over the years too. Your home equity increases as you make payments, and likely the biggest increase, which is home price appreciation, will increase your equity too. As 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.”
Growing Equity And Financials
Because of growing equity in your home, you can build your net worth over time. When you compare the net worth of renters to homeowners, you will realize the true difference in net worth. It is clear that owning your home truly offers a financial incentive and a long-term wealth building asset. This should incentivize more people to take the leap from renting to homeownership.
According to NAR (National Association of Realtors), median household net worth is significantly higher for homeowners than renters. For homeowners, their net worth is roughly $300,000. This is significantly higher than the about $8,000 net worth of renters. That shows that homeowner’s net worth is nearly 40x higher than that of a renter. This should show the true power of homeownership.