There are many reasons why people decide to purchase a home. This could include emotional reasons such as owning a home of your own as well as practical reasons such as financial factors. Currently, more than sixty percent of people own their own home in the United States and the reasons for their purchase vary. Below are multiple reasons, emotional and financial, on why people decide to purchase their home.
The main emotional reason many people decide to finally purchase their first home is that they want a place to call their own. Many homebuyers want to put down roots, make memories, and start families. Homeowners can also change the home to fit their wants and needs. This includes the small things that some are not able to do in rentals such as painting.
Homebuyers also have more variety to choose from when purchasing their home than if renting, where the options are often limited to a small backyard and little room. Typically, homebuyers will be able to find a home that suits their needs far better than rentals can. Lastly, homeowners feel a strong sense of responsibility and ownership in their home that they can be proud of, which can’t be felt in rentals. This ownership is the emotional foundation in which homebuyers purchase their home.
The first practical reason many people decide to purchase their home is because, if the personal has the financial means to do so, it is a much better financial decision than paying rent. Instead of spending their monthly payments on a rental home, which can be more expensive than a monthly mortgage payment, homeowners can pay their mortgage and see part of that payment returned in home equity.
Another reason homebuyers tend to purchase is the fact the real estate market tends to be much more steady and reliable than other investments such as the stock market. If prices fall in the real estate market, eventually they will rise again, which may not be true for some stocks. Lastly, it’s forced savings. If homeowners do not have the will to save on their own, they will be forced to put money into the equity of their home. As long as the homebuyer chooses not to take out home equity loans, they will be able to keep that investment as an asset for future years.
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Photo Credit – Tanamera Construction