Home Ownership Wins In The Long Run

Real Estate

Home Ownership Wins In The Long Run

Home ownership may seem financially daunting, and depending on the market in your area, the mortgage rates alone may have you wondering if the short-term challenges outweigh the long-term benefits. But when it comes to buying a home, there are many benefits that come along with owning a home that are worth considering; amongst them are financial strength and stability, a permanent home, tax deductions, and connection to your community. 

Why is it that the people you know who bought a home a decade or so ago don’t regret their decision, no matter the state of the market? It all comes down to the fact that “Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.” The National Association of Realtors (NAR)

So just how does appreciation work and how does home ownership win in the long run? 

Home Price Appreciation

Even though home price appreciation has moderated this year, home values have still increased significantly. In spite of the moderation of home prices this year, if you look at the percent change in home prices, you will see that home prices still grew on average by almost 64% nationwide the past five years. And when you expand that appreciation further, the gains are even more dramatic. Since 1991, home prices appreciated by an average of over 290% over roughly a thirty-year span, and experts say home prices are expected to appreciate nationally 2023. 

Why rent and fight annual rental increases for no long-term benefit? Data shows home values typically appreciate over time, so don’t let the shifting market delay your dreams. Consider the following benefits: 


  • Building Equity: Equity refers to the amount of value you have in a given asset. As you pay off your mortgage each month, you will be building equity in your home. 
  • Long-Term Savings: By building equity in your home, you are also setting aside money for your future. 
  • Building Wealth: As your property increases in value, so does your equity, allowing you to sell for a profit. 
  • Control Over Expenses: When you own a home, you can be certain of the monthly payment 
  • Strong Credit History: Buying a home can help you strengthen your credit over time, as long as you are consistently making your monthly mortgage payment. 
  •  Tax benefits: As a homeowner, you may qualify for a tax deduction, it’s a lesser-known incentive for first-time homebuyers, but it could save you hundreds on your next tax return. 


  • Civic Participation: When compared to renters, homeowners tend to have a certain degree of stability to the neighborhood and are more likely to contribute to the maintenance of their properties and surrounding areas. 
  • Property Improvements: One of the biggest benefits of homeownership is that it offers the freedom of customization. 
  • Permanent residence: Everyone knows that moving from house to house, or apartment to apartment is quite strenuous on the mind and body. But, once you buy a home, it may be the last move you ever do! 
  • Sense of community: Buying a home allows you to make long-lasting relationships with neighbors and other people in your community. 

It’s a good idea  to assess your personal situation before deciding to purchase a home. Ask yourself these questions:

  • Can you afford the property?
  • How long do you expect to stay on the property?
  • Why are you looking to buy a property?

Whether its financial stability or the longing for a community, the perks to homeownership can certainly be attractive. And if you’re ready to take that next step we’re ready to talk. Call Melody today! 949-401-7033

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