If you own your own home, and especially if you’ve owned it for some time, much of this will likely resonate with you. But first, I need to acknowledge the less fortunate out there who don’t own. Being that this is not the easiest time in history for young people to buy their first home due to the increase in home prices and interest rates of late, it may take some creativity and certainly commitment to accomplish that. That commitment comes in the form of earning a good income by working hard, be it in a career, a trade or a good, dependable job. It will require discipline around saving, borrowing (credit cards), and the handling of that, which affects credit scores.
While that’s not the joyful part of home ownership, per se, there is a joyful bonus to one’s self-esteem when this setup for success is achieved. But having a good job and a good credit score alone will often still not be enough for many young people at today’s prices. And this is where I repeatedly beseech parents and grandparents—who have the wherewithal—to lend assistance, whether you lend or gift some down payment assistance, or co-sign. Helping your loved one purchase their own home will often have greater value to them, and even to you, than anything they may inherit when you’re gone. When you’re a guest in their home, they won’t forget who made the American Dream come true for them.
So, let’s talk about that dream. The first thing that occurs is a sense of pride in having something substantive and anchoring in their life. Every homeowner knows this feeling. The next thing that happens is they get a sense of community. Suddenly, those who live around them become a staple in their lives. They will develop lifelong friendships and oftentimes a social circle, especially when kids enter the picture. Homeowners bond over what’s going on around them and even how they take care of their homes, helping each other out when a bit of assistance is needed, or just for that elusive cup of sugar midway through a favorite baking project. Numerous studies have concluded that neighborhoods with high ownership levels have lower crime rates, more community involvement, and better curb appeal, which enhances the value of all of their homes. Those lawn competitions you’ve heard of are absolutely occurring, whether they’re overt or the inevitable consequence of human nature—of personal pride.
Another of the great benefits of owning versus renting is having the ability to do the things you want to do with your home without having to get permission from a landlord. If you don’t love the color of the home you purchased, or the landscaping, or even the floor plan, it’s your prerogative and yours alone to change these things to your liking. There are few things more gratifying than taking a house and making it your home, with your touches, to represent you to guests and relatives when they come to visit. I purchased my present home over 10 years ago and have since changed landscaping, window coverings, fixtures, and completely remodeled the kitchen and two bathrooms. I was happy when I bought my house, but now I’m completely in love with it. And more changes are coming!
And guess what? While rental rates continue to rise year-after-year, your monthly expense remains the same, with the exception of rising property taxes and insurance. But these are minor in comparison. The icing on the cake is that you literally traded rising rents for rising equity in your investment! While there may be other investments that increase at a higher rate than home values, you can’t live in a mutual fund or crypto coin. And you certainly don’t get all the additional benefits mentioned above.
The last thing I’ll mention is security and peace of mind. Dorothy called it when she said, “There’s no place like home.” There’s no match to that feeling of knowing you can always go home to that sanctuary you made when you picked the house and made it home.
As always, we wish you Happy Homes.
