The Values of Homeownership

by Bob Bittelari 07/14/2019

You’ve never owned your own home and your thinking about buying. Transitioning mentally from renter to owner can be confusing at times. As a renter, you haven't had to deal with the ins and outs of owning your own home, and as you examine the reality of ownership, it can seem like it involves more cons than pros. You have to take care of all maintenance, repairs, insurance, upgrades and more. With all the added work to maintain only to one day resell your home, it might not seem worth it. So why is buying a good idea? Here’s why!

Consistent monthly payments

As a renter, you constantly are subject to rent increases. Depending on your city or neighborhood, this might be a small percentage annually (if your rental unit is under rent control), or an annual increase determined in your rental agreement. In many cases, your rent is subject to your landlord’s discretion at the end of each term of your lease, and if the property value and quality of living go up in your neighborhood (as you hope it does), it could price you out of your favorite living space. When you choose to purchase a home, you make a longer commitment, but your monthly payments are guaranteed to be the same throughout the repayment of your fixed-rate mortgage. Living with no surprise changes allows you to set budgetary and lifestyle goals further into the future, and the certainty to achieve them.

Equity and future cash flow

Yes, you will likely need to take out a loan to purchase your own home. The upside to ownership is that every mortgage payment you make increases the percentage of equity you have in your home. When you rent, you are only paying toward the term of your lease and the owner of the rental property gains all the equity. Investing in your own property helps your financial stability for the future. The more equity you have, the better your net worth and the more you can invest in other properties or goods. The more stake you have in your home, the more valuable it becomes to you when you want to sell your property in the future—to create cash flow, or to invest in a new home, other property, or your retirement lifestyle. 

Apart from the personal value of owning your own home—taking care of it, raising a family there, or starting a new life in your place—the investment can add even more value to your life. If you’re considering your first home purchase and aren’t sure about the commitment or investment value, speak with your local real estate agent for the best advice for you. Review your current means, your interests and abilities, and your life goals and let them help you make the right decision.

About the Author
Author

Bob Bittelari

 Bob is known for giving clients his undivided attention. He takes the time to listen, educate, advise and meet individual needs for both sellers and buyers. He understands how busy we all are and makes every effort to maximize your time. Bob had been with the Century 21 system for over 30 years and is a member of the Century 21 Master’s Hall of fame, a Centurion producer since 1992 and award winner of the coveted President’s Award. . Bob has served as President of his local Real Estate council of the Greater Boston Real Estate Board, coached both Arlington Little League, Arlington Youth Hockey, is a member of the Touchdown Club of Arlington, and enjoys golf, cross fit, and obstacle racing.

Having just joined Berkshire Hathaway HomeServices Commonwealth Real Estate, a name revered worldwide and has stood for strength, integrity, and trust, Bob will use his knowledge and skills in your best interest. You will be impressed with his level of service and professionalism. He is never too busy to service all of your real estate needs, so contact Bob today at 781-454-9900.