Why home ownership is STILL powerful

Growing up, I was taught what home ownership stands for. It means empowerment, a chance to grow personal wealth, and a chance to have a bigger voice in your community. In light of the current market “crisis” the public has begun to question the basic idea of home ownership. In spite of this the fundamental benefits of home ownership really remain the same.

Home ownership is empowerment. Yes, you are taking on a large, long-term loan, however, each month when you make that mortgage payment you OWN a little bit more of your home as opposed to giving that payment away each month as rent.

Homeownership is an opportunity to grow you personal wealth. Many of us have seen the values of our homes drop over the last few years- many of us to the point that we are upside down on our properties. One of the benefits of the downturn is a return to good sense lending and traditional down payments and traditional mortgage products. Historically- even with previous crisis- your home will double in value every ten years. Purchase your home with the idea that it is a long term investment and spend your funds to keep it in good maintenance. A tip: If you do choose to utilize equity from your home over the life of your mortgage using it to update and make improvements to the property will further increase its value over time. Consult with a realtor and lender about what improvements will pay you back in full such as kitchens and bathrooms.

As for your community voice? It’s the homeowners that are the backbone of any community. They are the ones paying the property taxes and it’s to their interest that legislation happens to protect a neighborhood and its schools, property values, services. Those property tax dollars that you are paying every month are your footprint in the community and it means that you, as a home owner have the clout and the voice and the power to shape where you live.

The reasons are clear and universal. So is the how- talks with your lender, decide what you can afford to put down and what you qualify for on a monthly basis. When budgeting for your home takes into account incidental monthly maintenance. Treat your home like a long term investment- try not to be tempted to take out the equity you’ve earned unless it’s to make improvements to the property that will pay you back in valuation right away (within 24 months). Most of all- love your HOME.

-Lindsey C. Dailey