Why home ownership matters
Most of us have heard the adage that it’s better to spend your money on your own home instead of paying for someone else’s. While rent as a living expense is necessary for almost all of us at some point in time, the transition from renting into home ownership should be more than a blip on your horizon. This is not an argument against paying rent, but rather a proposition for building something you can call your own.
Make it yours
The fact of the matter is, you have zero say in how a space will be utilized unless it’s yours. You can remodel, rearrange, rebuild, and repurpose your own resources into the proper solutions. You have the power to change your space in a way that suits you. Even if the job you currently have is not suited to working remotely, you may have future plans or a side hustle. Doing as much as you can while saving dollars and optimizing as much of your time as possible can only be a strength. It’a step in the right direction to building a business or livelihood. This alone is a good enough reason to move into ownership. What we are really saying is that with your own usable space you can retrofit your life. The life you choose to have.
It isn’t a pipe dream
The path is already there. Many people do it and will continue to do it. Move from the mindset that it’s possible to the mindset that it’s likely. Have multiple conversations with everyone in the process. Get all the information and then put the pieces together. Create a space mentally that allows you to move forward. You’ll be surprised how this translates into the physical space you need.
It can help you minimize other expenses
Many home owners are able to cut out other expenses. You have more to work with. Begin to declutter your life and cut out the things that you don’t need. Make space for your own gym, yoga studio, office, shop, art & hobby studio, accessory dwelling unit (ADU), YouTube channel studio, podcast room, etc.. By working from home and having access to your own food and kitchen you avoid unnecessary food expenditures. Be healthier! Also, internet service is cheaper than gas! Utilize more of your own time in a productive way. Driving to and from a work location is a waste of time unless it is necessary.
The Long & Short Of It
It may take some time to liberate yourself from a 15 or 30 year mortgage, however don’t let that stand in your way. The numbers say that your needs will eventually change and you will sell and move somewhere more fitting. The averages change but it’s around 10 years when people sell and move. You’ll have earned equity and very likely the appreciated value of your property will fast track that process. The longer you hold onto it, the more those gains can increase. Short term ownership and long term ownership have different rates of gains but you are still very likely to make a good profit either way.
According to the National Association of Realtors, as of April 2023, homeowner wealth is 40 times higher than renters. Gains from decade to decade are very real and tangible. As of January 2022, single family home owners had accumulated an average of $225,000 in housing wealth over the last 10 years.
There are innumerable reasons to make this investment for yourself. Realistically, even if it doesn’t make sense now you know it eventually will. Plan ahead. Don’t like the idea of staying in one place? A home isn’t antithetical to a nomadic lifestyle. In fact it can help power one. Make the decision and plan. Home ownership is worth it!
