The Impact of Homeownership on Financial Well-Being
Owning a home can be more than just having a place you get to call your own, it is a financial decision that can impact your well-being. It can impact your mental health as well as your financial health. It’s exciting to feel the satisfaction of having a place that is all yours, but homeownership plays a big part in building your family’s wealth and financial security.
When you rent a home, you are vulnerable to potential rent increases annually. It can be challenging to plan accordingly. If it increases by too much, you will then have to move which is a big project to take on. When you have a home, you are tied down to your monthly housing cost. When you know that your mortgage payment will not fluctuate yearly, it is easier to financially plan and have peace of mind.
Real estate historically has demonstrated long-term appreciation. While the market may fluctuate during short periods of time, the value of a well-selected property tends to appreciate or hold its value over the years. Homeownership can allow you to build wealth and an appreciating asset!
When you pay your mortgage payments, you are making forced savings payments. When you rent, you are handing money over to your landlord, but owning a home means you build equity with each payment. This is a great way to build fiscal responsibility with a sense of ownership, too.
As you age, retirement shifts to the front of your mind. When you are a homeowner, you realize the power that real estate has in your financial portfolio. When your mortgage is paid off, you can live in your home without the burden of a monthly mortgage.
Ultimately, homeownership can impact your overall well-being. For those considering a journey into homeownership, understand that there are advantages and disadvantages to everything. There is the mental stress of finding the perfect home within budget and making your monthly payments, but your financial well-being can also be impacted in different ways. You can have financial peace of mind with stable monthly payments, forced savings, and differentiation in your financial portfolio.
We hope that this blog post has provided insight into the financial well-being advantages of homeownership. If you would like an agent on your side in the CSRA, contact our team today!
The Bradley Sikes Group
Meybohm Real Estate