Though finances in the process of buying a home are a crucial consideration not to be ignored, we would like to highlight some of the other significant and measurable benefits to buying a home
July 21, 2015
When weighing whether renting or buying a home is a wiser decision, most people only consider the financial aspect involved: what should turn out to save more money in the long run. Though finances in the process of buying a home are a crucial consideration not to be ignored, we would like to highlight some of the other significant and measurable benefits to buying a home.
Homeowners tend to live in the same home for a longer period of time than renters, giving homeowners the opportunity to develop long-term relationships with surrounding neighbors that renters often do not. Similarly, home owning neighbors often make the time and the effort to initiate relationships with only incoming homeowners. These same neighbors often choose not to take the initiative with incoming renters, as they may be gone in a mere year or two. The social benefits and camaraderie obtained through long term relationships with neighbors significantly increases the pleasantness and value of the home owning experience.
Perhaps due to their limited financial states, millennials seem to be looking at different things when purchasing a home than generations in the past. Millennials are buying smaller homes and apartments located in urban areas seeking cost efficiency and energy efficiency, which directly translates to energy bill savings. Millennials like having space to entertain their friends, open floor plans and flexibility, and something a little different, perhaps a little unique. These rules apply even when buying in the suburbs. Millennials look for experiences, both to have and to share. They prefer walking distance neighborhood coffee shops and farmer’s markets to the typical chain restaurants.
Neighborhoods with a high percentage of homeowners tend to be more stable, compounding the social benefits mentioned. Home owners tend to take more pride in maintaining their homes and communities. They spend the necessary time and money to tend to and renovate their homes and yards, creating a beautiful community to be proud of. Home owners are also much more likely to be involved in the community. They are more likely to get involved in the local school board and politics, volunteer, participate in neighborhood watch, and attend or arrange neighborhood activities.
This increase in involvement seems to have very little correlation with the value of the homes. Simply being a homeowner was enough to trigger a change. Due to the time, money, and sweat invested into their residences and communities, home owners tend to have a lot more to lose. Neighborhoods with a higher percentage of home owners are more likely to have a volunteer based neighborhood crime watch and have a lower crime rate.
There is a stress accompanying the lack of stability associated with renting: finding a new place to live, moving again from year to year, deal with new landlords, needing to come up with security deposits, and moving school districts. Home owners have better access to credit and a richer credit history when the economy goes bad, and tend to have lower debt- to-income ratios. Home owners can also borrow against the equity of their homes in the event of an emergency. These benefits are also tangible to households of lower incomes, making the finding of any appropriate homebuyer assistance programs such as FHA loans and low down payment mortgages crucial.
The supportive, stable environment of homeownership extends from the family and into school. Neighborhoods with high rates of homeownership tend to have parents who are more invested in the community and school district. As a result, children of home owners may attend more selective colleges, achieve higher grade points, and better access to educational and economic opportunities.
Alongside traditionally storied financial benefits such as building equity and being able to invest in increasing home prices, homeownership provides financial security. Homeowners tend to be more financially stable. As they are able to borrow against their home equity, in situations of financial distress such as being laid off from a job, home owners require less welfare or public support than renters.
Finally, homeowners experience a tangible emotional benefits. Homeownership is often associated with the American Dream, giving home owners a sense of accomplishment and pride. Homeownership also gives people a sense of individual responsibility, commitment, and discipline.
Homeownership gives people access to better opportunities and brings safety, responsibility, and stability into communities. Buying your first home should prove to be a great investment for you, your family, and the community as a whole. If you need any assistance in choosing a mortgage or buying a home, contact a licensed mortgage advisor at Angel Oak Home Loans today.
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