I have yet to meet a person who doesn’t want to own a house.
It is the American Dream. We are not Americans, but owning a home is something worth emulating from the Americans.
Home ownership has a lot of benefits to the individual who owns the house, his family, the government and the society where he lives.
Let’s count the ways.
1. Home ownership fulfills a basic need of man.
It is often cited that humans have three basic needs: food, clothing and shelter. Even the primitive man who barely knows anything about money needs roof over his head to keep him warm in the evenings. So it is safe to say that a house is among those things we simply should not live without.
(Related Link: 5 Great Tips for the First Time Home Buyers.)
2. It promotes freedom.
There are many types of dwelling units (condo, apartment, etc) but with most of them, you can do whatever you want with your own house. Since it’s yours, you are essentially the king or queen of your own estate. You can enhance the way it looks or you can destroy it altogether. You can rent it out or you can sell it, it’s your choice.
(Related Link: When is the right time to buy?)
3. A house provides security.
Without a home to call your own, you can never feel secure.
Sure you can have a roof over your head by renting a house. But what if the landlord decides to use the property? Or, what if you run into financial problems and you can’t pay your rent for a much longer time? In situations like these, you will realize that a home of your own is a very reliable shock absorber.
(Related Link: Housing Loan Preparation.)
4. Study has shown: Home ownership promotes family stability
Once you decide to buy a house, you are also planning to live there for a much longer period of time. As a consequence you also make a long term commitment to build your financial future. Naturally, your kids will also love to play around with friends in the neighborhood.
Home owners are also much more motivated to enhance the quality of their home environment compare with the renters. This kind of environment is beneficial to the children and everyone living in that house.
One study in the US found out that Homeowners’ children are 59 percent more likely to own their own home in 10 years.
That’s according to the Homeownership Alliance of Non-profit Downpayment Providers.
(Related Link: Buy a Functional House.)
5. Your house is a good investment.
Held for the long term, real estate almost always rises in value. Proponents of real estate as an investment love to say that real estate is a hedge against inflation. That is, if price of commodities rises, the price of real estate keeps up with it. This is the one aspect of real estate that works like magic. It increases the asset value of the owner mostly in the form of equity.
One of the secrets of a good real estate is location. Click here to learn how to select a good location.
(Related Link: Equity, Appraisal, Loan Amount)
6. Home ownership helps fuel the country’s economy by:
This time, let’s cite how homeownership benefits the society. Here are some of those economic catalysts:
- the various forms of taxes(capital gains, real property tax, etc)
- job creation (from construction services to brokerage and insurance services)
- direct spending on housing (construction materials, real estate development, etc)
- consumer spending (homeowners naturally would want to spend for themselves)
(Related Links: Pag-IBIG Housing Loan Alternatives)
7. Encourages countryside development.
Real Estate Development, such as the conversion of a raw, vacant land to the subdivision, contributes to the national developments and spurs various forms of economic activities in those areas that are being developed. And when the population increases in that area, it encourages the creation of commercial facilities.
(See also : Reasons why you should not buy as house.)
There you have it, the seven benefits of home ownership. What’s good for you can also be good for your community. So, if you have the chance, don’t deny yourself the benefit of owning your own home.