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 ever of attitudes toward home ownership- showed that 76% of owners and 66% of renters considered pride of ownership an important reason for buying.
Dislike Paying Rent: Almost equal portions of owners and renters – close to 7 in 10
said a dislike of paying rent was 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 rent 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% or renters said the investment aspect of ownership was important.
Tax Advantages: Property taxes and qualified home interests are deductible on schedule A, for itemized deduction.
Long-term appreciation: People consider home ownership a good investment because they view it as a long term venture. Historically, prices have risen steadily.
Leverage Investment: People borrow a great deal to buy a home, yet they receive the full benefits of price appreciation. In the long run, investment in a home far outpaces inflation.
Source of Savings: Home ownership always has 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: 7 in 10 renters in the NAR home ownership survey said they planned to buy a home in the future. More than three-quarters of these people said they were willing to sacrifice to do that.
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