Know the Values of Homeownership

by Laviola Team 07/07/2019

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

Laviola Team

Steve & Sharon Laviola have sold 24 homes in the first half of 2018 with many newarriving daily.... 2017 was a great year too with 31 homes in the area being sold by the Laviola Team. 2016 was supported with 28 home sales. Steve Supervised and staffed model homes for new community in 2015 where 61 homes were sold at high market pricing due to his knowledge of new construction and excellent communication skills. 51 Homes sold in 2014, so you can see that the stats for the Laviola Team speak for themselves....

Steve Laviola was the #5#5#5#5 individual agent with RE/MAX in the entire state of Tennessee in 2015. He received the 2014 Chairman's Club Award; less than one and half percent of RE/MAX agents, nationwide, achieve this prestigious award. He holds the Platinum Club Award, for two consecutive years and was also honored with the Hall of Fame Career Award. Sharon Laviola has proven marketing skills and provides that TLC for an excellent experience in property purchases or when selling a home. She has staging experience and is a member of the Institute for Luxury Home Marketing. Steve and Sharon have over 20 years of experience in Real Estate. 

They are very active in the community and give a portion of all sales to the Children's Miracle Network as well as many other local organizations in their area. Just more reasons for you to let their expertise guide you through the buying and selling process!