A Top Realtor® With KELLER WILLIAMS Platinum Realty
In today's current housing market, you may be putting off buying your first home even if you're emotionally and financially ready. However, waiting may not make sense when considering the benefits of homeownership – both financial and non-financial.
1. Better Physical and Mental Health
We'll start with a less conspicuous or often-overlooked benefit of homeownership – the physical and mental health benefits.
The National Library of Medicine states, "We find that home ownership improves physical and psychological health." Furthermore,
studies have found that homeownership has led to an increase in children's good health and a decrease in children's behavioral problems and asthma. Who knew?!
2. Better Education Outcomes
Habitat for Humanity reports, "The graduation rate for children of homeowners is 19 percent higher than for renters, and they are twice as likely to acquire some postsecondary education, according to a study in a journal published by the Federal Reserve Bank of New York."
3. Create a Source of Money
Over time, you
build equity in your home that you can use to access money for anything from home improvements to consolidating debts or from buying a new boat to funding a new business. While it is possible to lose equity if the value of your home drops, statistically, home prices have increased by 4.3% annually since 1991.
4. Build Net Worth
"One of the best ways to build your family's financial future is through homeownership," according to
financial experts. "The Federal Reserve reports the net worth of a homeowner is actually over 40 times greater than that of a renter." Home equity and appreciation (increase in the value of your home) help build your net worth.
5. Tax Benefits
Home mortgage interest, mortgage insurance costs, and property taxes may be tax deductible, reducing the federal taxes you owe.
6. Build Credit
"Millennial homeowners have stronger credit profiles than millennial renters, with a median credit score of 693 compared with 601 for renters," according to
Lending Tree. There are many reasons why. For example, homeowners have a median of nine accounts, compared to renters with six accounts. While homeowners typically borrow more money than renters, they borrow less relative to their credit limit.
7. Control Your Monthly Housing Payments
The monthly payments on a fixed-rate mortgage will remain the same, so you don't have to worry about rent increases. Furthermore, if mortgage rates drop, you may be able to refinance to lower your monthly payments. The only costs that may increase are taxes and insurance.
8. Sense of Community
Statistically, homeowners stay in their homes longer than renters, which gives them more time to build meaningful relationships with their community and helps them feel more connected. Homeowners also tend to be more involved in their communities than renters.
9. Able to Make Your Home Your Own
As a renter, what you can do to your home is probably limited. You may not be able to make any changes, need permission from your landlord, or change things back before you leave. If you own your own home, you can customize and make it your own. Paint your front door bright purple if you want to. Customize the kitchen cabinets to fit your specific needs. The only restriction homeowners may face is if they are a part of an HOA.
10. Comfort and Privacy
Homeownership lets you enjoy features that enhance your lifestyle and usually provide more privacy than renting.
If you think the benefits outweigh any reasons not to buy your first home, Pete Heim can help you get the most for your money in any real estate climate. He knows Berks County real estate like nobody else, and he's ready to get to work to help you find your dream home!
Call Pete today at 610-745-3378 or 610-898-1441, or connect with him online.
Pete Heim is consistently ranked among the best real estate agents in Berks County. He's been serving Berks County buyers and sellers with pride for over 35 years. Put his experience to work for you!
