Home Ownership InvestmentMany people rent their homes because they simply aren’t aware of the positives of that a home ownership investment offers.  A Home ownership investment offers some great benefits and the rewards that ownership offers definitely overcomes any small positives that renting may offer.  Maybe you’re renting because you don’t want to have to mess with repairs or may it’s that you like someone else has the responsibility of owning the home.  Regardless of your thoughts on renting, this article may open your eyes to some benefits you haven’t thought of.

One great thing about home ownership beyond the investment part is that the space you have is yours.  You can paint a wall purple and yellow stripes if you want.  The feeling that you have when you own the home is very freeing and you can make your own rules.  Another great thing is that if you want to rent a room to someone to help pay for the payment you don’t need anyone’s approval.  You can own your own home and take advantage of some positive cash flow in the process.

The Positives of the Home Ownership Investment Opportunity

When you own your own you have the pride of ownership that comes with home ownership.  It’s a proven fact that when you are the owner of an item you tend to take care of it more.  This will hold true with your home as well, you’ll want it to look nice, you’ll want it to be in the best condition possible.  Simple things like adding some bushed to your landscaping to enhance your curb appeal make you feel good about owning your home.

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The stability that comes from a solid investment in home ownership cannot be compared to renting.  As a renter you really don’t have any stability, your landlord can give you a notice and you’d have to leave.  For many families this might just be all they need to make the decision to buy a home.  After all, if your kids are in school and you have to leave your home then you have to find another rental home in the area.  This can be very damaging to your family in the event they’re not able to secure the same school during the move.  Another point to consider is the potential for an increase in rent, when you own a home with a fixed mortgage that payment never changes.  The payment you start with is the same payment amount you’ll end with.

One of the biggest positives to home ownership is the investment side that is further defined by appreciation and equity.  Here’s something to consider, if you purchase a home for $100,000 and average appreciation is lets say 5% then each year your home will appreciate $5,000.  Pretty easy, right?  I know that’s only a 5% return until you look at the fact that to purchase the home you only had to put a small amount down.  Lets further the discussion and say you put 5% as your down payment which would be $5,000, on your $5,000 you made an additional $5,000 your first year which equates to a 100% return.  How’s that for a good investment!

As time goes on throughout the years, you make your payments and the appreciation takes place.  At first you owe $100,000 for your home and that’s basically what it’s worth but remember each year that passes you’re paying down the principal and appreciation is happening so at the end of your loan term not only have you aid off a loan of only $100,000 but that same property may now be worth $200,000 or more!  Renting a home doesn’t provide for any type of appreciation, not even with your security deposit.

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Yes, owning a home is not always easy and does take work but the rewards in the end will far out weigh renting any day!

 

For more information about home ownership investment and buying a home, please contact us or leave a comment below.  We’d appreciate the opportunity to assist you!

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