7 Reasons Your Home Is Your Best Investment
Is a home a good investment? Is now the right time to buy a home? These are interesting questions for interesting times. The truth is that a home is simply one of the best investments you could make. Right now, homeowners across the country are seeing their home values soar and wealth accumulate. There are so many financial and personal benefits to owning a home. Here are our top seven reasons why homes make the best investments.
The top 7 reasons your home is your best investment
1. You’ll build equity instead of pay rent (and build wealth over time)
The most significant benefit to owning a home is that your monthly living expenses are recoverable. The money you pay toward your mortgage each month reduces the amount you borrow from the lender to own your home. Therefore, each month you pay your mortgage, you have more equity in your home.
On the contrary, when you pay rent, the costs are unrecoverable and will never be “paid off.” They don’t help you to build equity or reduce future expenses.
2. Monthly costs are typically cheaper when you own a home
It’s very common these days for renters to see their rent increase year over year; landlords and management companies provide housing as a profitable business model and will raise the rent as long as there is demand. Therefore, people who rent can’t rely on current living expenses to stay the same.
Homeowners, however, agree to mortgage terms that usually keep monthly payments consistent and predictable. Some mortgages don’t have fixed interest rates, and monthly payments may vary. Even in these cases, homeowners know the conditions and can better predict living expenses.
3. You’ll have greater control over your space and lifestyle
There’s no other feeling like making your new house your very own home; the thrill and satisfaction of creating a “dream space” are unforgettable for first-time homeowners. The freedom that comes with homeownership is perhaps its biggest perk. Finally, your property can be customized to your needs and interests, from clever basement storage to main-level built-in bookcases to an outdoor kitchen for summertime entertaining. Especially if you’ve rented for years, the allure of purchasing a home with a customizable environment is real!
4. The peace of mind and stability
Enough said! When you own property, you aren’t at the whim of landlords or management. You have the chance to create a stable home for yourself and your family. When you rent a home, you can always be forced to move. The control and stability of homeownership can be very reassuring and peaceful.
5. You’ll see returns whenever you invest in your property
You’re more than likely to see a return on the money you spend customizing your house. Each time you upgrade your appliances and systems or make your property more private, energy efficient, or livable, you’re growing your home’s value – and, ultimately, your wealth!
6. Look forward to impeccable credit
Though it’s common to see an initial dip in credit scores, homeowners enjoy much higher credit scores on average. If you pay your mortgage on time, you’ll continue to build a strong credit history and score. Your good credit standing can be used for other investments or loans in the future. Credit history can also help you get the most favorable deals on credit cards and the lowest interest rates on other loans.
7. Set yourself up for your golden years (AKA a mortgage-free retirement)
Once you’ve paid off your mortgage (in thirty years, give or take), your home becomes an asset you own outright. When you fully own the house you live in, your living expenses will go down dramatically. You’ll set yourself up for a comfortable retirement if you can own your home outright by your sixties. And regardless of whether you owe your mortgage lender anything, by the time you reach retirement age, you could sell your house to purchase a smaller, more affordable one or fund the next chapter of your life – whatever that might be!
Your home is your greatest investment
There are plenty of reasons to consider homeownership. The financial benefits and newfound freedoms of purchasing a home can contribute to your health, wealth, and happiness. It’s a fantastic time for homebuyers to prepare for home ownership since real estate trends indicate that the market is beginning to favor buyers. And if you’re already a homeowner dreaming about your next property, work with Curbio to add value to your house before you sell it!