Being a homeowner gives you the security of knowing the roof over your head is yours. You get a feeling of contentment, satisfaction and fulfillment. It’s the wish of most, if not all, of us. Homeownership is the American Dream.
Homeownership is the best investment. The value of your home appreciates, which means that if you decide to sell it, its price will be much higher than what you paid for it. Homes appreciate about 5 percent every year (of course some areas appreciate more than others. As we have seen in our area in the last few years, not all homes appreciate annually, but just like most investments if you hold onto them for the long term they will gain value. Try if you can to wait out the market and only sell when you will make a profit.
In a way, homeownership is a form of forced savings because you’ll have to allot a certain amount of money for monthly payments or risk losing your home.
You also need to set aside funds for future repairs or improvements.
Homeownership gives a sense of permanence where your family can live and grow.
Emotional security goes with this. It gives your family peace of mind knowing that you have a home to call your own. You will develop lifelong friendships and a sense of roots for you and your family. Your family will develop a sense of community. Homeowners become attached to neighbors, become interested and involved in events and work towards the betterment of the community to protect and preserve property.
Additionally, owning a home eliminates landlord hassles. You will have no more worries with regard to a lease not being renewed and monthly rent being increased. Owning a home gives you the freedom to redecorate, remodel, make improvements, have pets, change the color or the décor of your home as you desire. You also get privacy unlike a rental in which the landlord has access to the place.
Keeping up on maintenance is crucial to making sure your home does in fact appreciate. Routine upkeep ensures that your family stays safe while living in your house and it eliminates costly big ticket repairs. For an example, having your septic system pumped every couple of years will help you prevent costly back-ups and extends the life of the system. The same goes for your furnace.
Painting your house every few years keeps your home from needing costly repairs and prevents leaks around windows and doors.
Finally, you save on taxes. All the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
You can borrow against your equity because the value of your home increases against what you owe on it. You may also have a better credit rating. Paying your mortgage on time contributes to an outstanding credit history.
Owning a home is the biggest and best investment a person can ever make, so you have to manage that investment to the best of your ability. It requires extraordinary commitment of funds, time and attention.
Carrie Colby is a broker and the owner of Premier Properties located at 1263 Roosevelt Trail in Raymond. She can be reached at columnist@TheWindhamEagle.com.