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!
More than 6 in 10 renters said “settling down” was an important reason to buy.
76% of owners and 69% of renters said the investment aspect of ownership was important.
Property taxes and qualified home interests are deductible on Schedule A, for itemized deduction.
People consider home ownership a good investment because they view it as a long-term venture. Historically, home prices have risen at relatively steady rates. Existing home prices rose an average of 4% per year between 1980 and 1992.
People borrow a great deal to buy a home, yet they receive the full benefits of price appreciation. In the long run, investments in homes far outpace 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
Almost 7 in 10 renters in the National Association of REALTORS® 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.