Pride in Owning: Most people buy homes to have control
over where they live. Although investment features are important,
the psychological reasons for buying- the satisfaction of owning
and freedom from paying rent- are at least as important.
In a survey done by the National Association of REALTORS of 6,000
homeowners and 2,000 renters- perhaps the largest survey ever of
attitudes toward home ownership- it was shown that 76% of owners
and 66% of renters considered pride of ownership and important
reason.
Dislike Paying Rent: Close to 7 in 10 of almost equal
portions of owners and renters expressed a dislike of paying
rent as an important reason to buy. Renting offers a lifestyle
that’s nearly maintenance- free. That may appeal to you, but
consider that renting offers you no equity, no tax benefit,
and no protection against regular increases. Writing a rent
check is just like watching your hard- earned money sail away!
Settling Down: More than 6 in 10 renters said “settling
down” was an important reason to buy.
Good Investment: 76% of owners and 69% of renters said that
the investment aspect of ownership was important.
Tax Advantages: Property tax and qualified home interests
are deductible on Schedule A, for itemized deductions.
Long- Term Appreciation: People consider homeownership
a good investment because they view it as a long-term venture.
Historically, home priced have risen at relatively steady rates.
Existing home prices rose and average of 4% per year between
1980 and 1992.
Leverage Investment: People borrow a great deal to buy
homes, yet they receive the full benefits of price appreciation.
In the long run, investments in homes far outpace inflation
rates.
Source of Savings: Homeownership always has been and
continues to comprise the single largest source of savings for
American households. Homeowners build equity and can borrow
against it. Sacrifices Are Worth It: Almost 7 in 10 renters
in the Nation Association of REALTORS homeownership survey said
that they planned to buy a home in the future. More than three-quarters
of these people said they were willing to sacrifice to so that.
To show the potential financial savings you could have by owning
your own home, please use our Rent vs. Buy Spreedsheet
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