As I browsed through the internet, I found one article that talks about homeownership as a tool to build wealth. On the finanical tip, the New York Times wrote about “Homeownership and Wealth Creation“.
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| Source: Gap in Net Worth by New York Times: analysis by Center for Responsible Lending of Federal Reserve Board’s Survey of Consumer Finances |
Home ownership is that for me BUT it will represent so many different things to people. According to Keeping Current Matters, there are four reasons why Americans buy a home.
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| Source: Keeping Current Matters |
There’s No Place Like Home
The top 4 reasons to own a home cited by respondents were not financial.
1. It means having a good place to raise children & provide them with a good education
From the best neighborhoods to the best school districts, even those without children at the time of purchasing their home, may have this in the back of their mind as a major reason for choosing the location of the home that they purchase.
2. You have a physical structure where you & your family feel safe
It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.
3. It allows you to have more space for your family
Whether your family is expanding, or an older family member is moving in, having a home that fits your needs is a close third on the list.
4. It gives you control over what you do with your living space, like renovations and updates
Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home?
The 5th reason on the list, is the #1 financial reason to buy a home as seen by respondents:
5. Owning a home is a good way to build up wealth that can be passed along to my family
Either way you are paying a mortgage. Why not lock in your housing expense now with an investment that will build equity that you can borrow against in the future?
Bottom Line
Whether you are a first time homebuyer or a move-up buyer who wants to start a new chapter in their life, the holiday season is a great time to reflect on the intangible factors that make a house a home.
“The REAL Reasons Americans Buy a Home.” Keeping Current Matters. N.p., 23 Dec. 2014. Web. 02 Jan. 2015.