Your house is a property. Your house is a wealth-building asset. But first and foremost, your house must be a home. Without that feeling of home, your house is just a place you happen to occupy. You and your house are just strangers.
“Home” is a feeling, not a price tag. That feeling of home is positive, powerful, and priceless. So it’s not surprising that homeownership not only improves your finances, but improves your self-esteem, your family, your neighborhood, and even this country!
As Cassy Parker – a writer for CreditDonkey – tells us: “Unless your bank forecloses on your house, your home is yours until you decide to sell it.” She’s talking about security. Renting a place leaves you at the mercy of your landlord. In some states, like California, you can be evicted for doing nothing wrong. You could be evicted for repairs or if the landlords want to sell or even destroy the property. Landlords could open your place to possible police searches without your consent.
According to survey by Freddie Mac, 86% of renters agreed that homeownership provided protection from rent increases. And 81% of renters agreed that homeownership gave you independence and control. This same study revealed that 86% of renters thought that homeownership gave more privacy. Privacy is important. Sharing a wall with another renter may be nerve-wracking, but having to share a key with your landlord can be unsettling.
In your home – your castle – you are secure.
The same Freddie Mac survey revealed another thing that renters envy about homeownership: the flexibility to design your place the way you want!
Having a creative outlet ranked #3 on the renters’ survey. You can be stuck with the landlord’s idea of décor – leaving you unable to paint walls, renovate a room, or replace flooring. Designing your house’s inside and outside puts your signature on it. Your house feels more like “you,” and therefore more like home.
According to a research study by Lisa Mohanty and Lakshi K. Raut, children who change schools too often perform worse in school, which is likely due chaotic shifts in school environments and curriculums. It’s possible to rent the same place for years and provide stability for your children. But as we read above, that stability is outside of your control and belongs to your landlord.
Homeowner’s children perform 9% better in math, perform 7% better in reading. They’re 1 to 3% less likely to have behavioral problems, according to a study in the journal Real Estate Economics.
Children love that feeling of home, just as much as parents.
Cassy Perera writes that “researchers can’t agree whether homeownership creates a safer community or if homeowners seek out safer communities prior to buying.” Nonetheless, homeownership is linked to a lower crime rate. Researchers Jinlan Ni and Christopher Decker calculated that increasing homeownership by 1% decreases the national cost of violent crime by $959.8 million!
In Freddie Mac’s survey, the number one perception renters had of homeowners was this: “Owning a home is something to be proud of.” An astounding 91% of renters agreed with this. With additional security, freedom, creativity, and stability, no wonder homeowners have a right to be proud.
Dorothy summed it up best. “There’s no place like home.”
The social benefits of homeownership just scratch the surface of all the wonderful perks to owning your own home! If you are curious, when you should stop renting and buy a home, just contact one of our Home Loan Consultants, and we would be happy to help!