A home is often the biggest investments of a lifetime. Whether you’re looking to stay there for the next 30 years, or it’s just a quick flip as an investment property, many people view the goal of home ownership as creating a solid nest egg. But there’s more to it than that.
Leaving the Rental Trap Behind
The biggest benefit of owning that first home may be leaving the trap of monthly rent payments in the dust. Sometimes house payments can be even less than rent and it’s going into a mortgage that will build equity over time.
For many first-time home buyers, there is a large list of renovations, upgrades and remodels that they want or need to do. It’s almost a rite of passage to tackle home projects for the first time. While some things may need to be contracted out — you may have latent skills even you’re currently unaware of. How will you know unless you try? Don’t be afraid to install a faucet, build a deck or do some painting. You might even gain a few new skills in the process.
What attracts many homebuyers is how a small amount of money can be a huge investment and may even boost property values significantly. This is called sweat equity. Adding upgrades such as electrical, landscaping, and even HVAC systems boost home values. Doing it at low cost, or better yet, doing most of it yourself lends a greater profit return if you ever resell.
Along with buying a home comes more responsibility. This isn’t necessarily bad, though. Responsibility often comes with roots, with character building, and new opportunities for growth. There is something that happens when a place is your own — for better or worse. Call it a bond, call it a ball-and-chain, but the responsibility can make us stronger, and more capable than we were before.
The choice to own a home is a big one, of course. And a personal one. But for many people, the end result is having a solid nest egg that can be used for future financial security. And that, along with the freedom to get that dog or cat they’ve always wanted, is usually a boon.