Jun

14

What’s So Great about Homeownership Anyway?

Filed Under Buyers |


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In this fantastic buyers market, I continually notice many buyers questioning whether or not now is the time. Each person has their own idea of when to buy, how much a home is worth, how further the market will slip in price and on and on.
I think one of the things that a lot of people are forgetting is what homeownership offers. And I’m not going to talk about the tax benefits (ask your CPA or call me).

Each home and potential buyer will vary when it comes to affordability based on financing options, the condition of the home, etc. But for the purposes of this article, I will use a simply pre-qualification for a potential buyer for any house, at any level. For this article, let’s assume that a 4 to 1 ratio for Income to Mortgage Payment (Principle, Interest, Taxes Insurance – PITI) represents affordability. So setting aside the issue of what is affordable and all the number-crunching people do, let’s assume when a buyer is out looking, that if they make four times what a mortgage payment will be – that’s affordable.

With regard to the interest rate, let’s assume that any mortgage that’s a fixed rate not exceeding 6.5% (yes, that’s right 6.5%) is a good quality interest rate. So let’s move that out of the way when we’re thinking about homeownership.

Clear your mind of all that stuff.

This article is about what’s great about owning a home. So let’s talk about what many people don’t talk about.

Owning the land under your feet. No one tells you how to manicure your lawn. It’s yours. No one tells you what shrubs to plant. You make the call. You want a deck or a fence, call the town, find out about any necessary permits and put it on your land. You want to repave the driveway, put in Belgium block, pavers – done. It’s your land.

Your home is your castle. Keep it as neat as you want or messy. The choice is yours. You don’t have to move out in a year, there’s no lease and no landlord telling you how to keep your home. No inspections and no one knocking on your door for the rent every month (you mail in your mortgage payment!).

Your space is all yours…and your guests. There’s nothing like entertaining guests in your new home, or your updated home. You don’t like the bathroom? Demolish it and build a new one. You don’t like the kitchen floors or the cabinets? Reface the cabinets or buy new ones and put in that tile floor you’ve always wanted.

Shopping for your home. There is nothing like going to a home and garden shop or Home Depot or any type of home improvement store and buying things to improve your home or fix your home. After a few years, of course a broken toilet or minor repairs can become a nuisance but in the long run, any improvement makes your home all the better.
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I think that sums up the “investment” aspect of purchasing a home. When you buy stock, you buy a piece of paper. You can build a home with that piece of paper and it doesn’t provide shelter or a place for your family to live. A home to live in, is not a typical investment. An investment property is not something you buy with the sole intention of making a profit within a given time frame. A home does not fit this criteria.

A home is a long-term investment for the average home buyer and one thing is certain, in this market, anyone who buys a home now is “getting a deal”. Period. You are buying low and eventually, you’ll sell high. That’s long-term investing. A home you buy to live in, is an investment in your family. It’s where you will live and eventually, someday, you or your kin will sell it for a profit of sorts. But for the years to come, your home will be all yours to make memories in and become a part of a community.

In the United States Constitution, there’s a few words and they say, “…and the pursuit of happiness.” Originally, this read, “…and property.” That’s what’s so great about homeownership.

(c) Copyright 2009, www.tommcgiveron.com
By Thomas McGiveron, Licensed Real Estate Salesperson



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