Top 7 Benefits of Owning a Home
The Washington Post published an article that perfectly illustrates the advantages of owning a home for a family’s life and legacy: 85 years later, Chinese family honors the Black couple who rented to them (if you can’t read the whole article, try this link). The impact that renting, then buying, their home in Coronado, CA, had on the Dong family was transformative: they had a safe and secure home base, their children had access to good schools, and, ultimately, the profit from the property’s sale benefits their children (and probably grandchildren!) for years to come. On top of it all, the Dongs are paying forward the kindness of the original Black homeowners, Gus and Emma Thompson, by donating a large portion of the sale to the Black Resource Center at San Diego State. Now, THAT is a family wealth legacy of note!
Seven Simple (But Powerful!) Benefits of Owning a Home
So, what are the benefits of owning a home? Homeownership is the start and foundation of success for many because it’s a method of investment with many rewards. The advantages of owning a home include:
1. Building Equity: Over time, homeowners typically build equity in their property, which can be a significant financial resource. We’ve said it before and we’ll say it again: By owning a home, you will build equity that you can use to create wealth by investing in more real estate, then repeat the process as each property’s equity increases.
2. Stability: Unlike renting, owning a home provides stable housing costs, particularly with fixed-rate mortgages. Even aside from stable housing costs, you gain stability simply because you have a house with shelter and running water. We sometimes take for granted how much easier our lives are because we live in a home; think how much harder life would be if you had to live out of your car and didn’t have ready access to a bathroom or shower!
3. Tax Benefits: Homeowners often enjoy tax deductions on mortgage interest and property taxes in many U.S. states, including Alabama—for example, the homestead exemption (which is an advantage of purchasing and owning a home).
4. Improved Credit History: Consistently paying your mortgage on time can strengthen your credit score.
“You build your good credit with each payment over time, and then use your equity to re-invest in another home.” ~ Leslie Davis, Financial Madness
5. Access to Better Education: Homes in good neighborhoods often have access to quality school districts. As the Washington Post article notes, “...their modest three-bedroom house on a leafy street near the center of Coronado, which the Dongs began renting in 1939 before buying from the Thompsons in 1955, brought Ron and his siblings a comfortable childhood in the affluent town. They each attended Coronado High School and went to college, becoming the first members of their family to do so. The Thompsons ‘enabled the Dong family to survive and thrive,’ Janice said.” The benefit of access to schools that lead to higher education cannot be overstated.
6. Sense of Community: Homeownership fosters stronger community ties and increased civic engagement for many people. Our environment impacts us, so we are more invested in improving and supporting the well-being of not just ourselves but also our neighbors, our schools, churches, and our local businesses. Community is integral to our psychological and physical health.
7. Personalization and Control: Owning your home means you can customize your space without restrictions often imposed by landlords. This might seem like an insignificant perk compared to the others, but it’s actually vital. Making a space “your own” is a ritual and privilege most of us NEED. A sense of ownership and familiarity are benefits to owning a home that we shouldn’t underestimate: they contribute to effective rest and other healthy habits that help us face and overcome challenges life throws our way.
The Advantages of Owning a Home Are Clear - So What’s Next?
Owning a home isn't just about having a roof over your head; it's about laying down roots and creating a stable foundation for the future. If you want to create your family wealth legacy through property in the Mobile, Alabama, area, Leslie Davis and the Key Performance Team are here to guide you.
Start your journey - contact Leslie Davis & KPT!