If you’ve just got your hands on your dream home (finally!), you’re probably walking on cloud nine right now! After all, a place of your own to call home, to settle into and raise a family if you want to, and to have total control over – it’s a real privilege in the modern day and age.
However, you may be feeling a little worried about what being a homeowner is doing to your finances. It’s a big change, to go from renting to owning, and some people don’t find it an easy adjustment to make. And yet, owning your own home can have some real benefits on your bank account, so let’s go through them below.
It’s a Solid Investment
Being a homeowner is an investment, and it’s one of the best types of investments known to man. When you search through real estate listings, you may not realise the level of investment you’re making, but one day, you’re guaranteed to see a very good return on the price you originally pay. The same cannot be said for standard stocks and liquid assets!
House prices in the UK went up by over 7% in January, with prices rising by 8% in 2020, which is one of the highest rates we’ve seen! This is a clear sign that housing is more valuable than ever, and people are coming to see it for the major asset it really is.
However, a home can be slower to sell, thanks to its nature of being high priced, and its need as a home dedicated by the housing market it’s a part of. And yet, it will still sell, and the land it’s built on is going to be even more valuable than the building itself, so you could simply demolish if need be.
It’s More Safe and Secure
A home that’s entirely yours is much safer and more secure than any rented unit, simply because you know where all the entrances and exits are, and who is coming and going. Not to mention how you can actively renovate to make your home even safer, by installing smart home security systems, or building a bigger, stronger fence around your back garden.
You can feel more stable and private in a home of your own, and that’s something you should never underestimate the value of. It’s a big part of what makes something your dream home, after all!
It Has Much More Value
A home that you own yourself has a lot more value than any building you pay to live in – simple as! But when you’re paying a mortgage on a home you’ve been saving up for for years, you’re going to be building equity as you go. And the longer you live in your home, the more equity you’ll have.
But what is equity? It’s a term many people can misunderstand, but to put it in simple terms, equity refers to the market value of the property at that current time. It’s the value of the interest that’s created as you pay off a mortgage, and it gets bigger and bigger over time. It can be used to help you secure another loan, if need be, and it can be immediately bolstered by putting down more than the standard 20% deposit on the home you want to buy.
All in all, if you paid over $200,000 grand for your home, and you’re paying off the mortgage on it bit by bit, and you’re creating equity as you do so. You’re making it more valuable, and if the time ever comes in which you want to sell, you have full rights to put it on the market at a much higher asking price.
Being a homeowner can be very beneficial, thanks to the sheer fact that you’ve got a home of your own that you can do what you like with! However, the benefits don’t stop here, and while we’re all aware that being a homeowner has its drawbacks as well, there’s no denying that you’re in a better position than when you were renting or living somewhere rent free with friends or family.
So, make sure you treat your home as the valuable asset it really is, and never be afraid to renovate or remodel it for more value in the long term. Your property and the land it sits on will appreciate over time, and that can make for a very valuable heirloom for future generations!