Buying a house is often referred to as an “investment” and mainly a financial decision. While purchasing real estate certainly is a huge financial purchase and investment, what is the real reason people buy homes? How about yourself, if you are a homeowner, why did you purchase your home?
For many people, buying a house is an improvement of quality of life. It’s more space, privacy, a sense of ownership & community, etc. These things are important to people. There is a value, a cost, to each of these things…although the value/cost may be different for each person.
National Housing Survey – Top 5 reasons given in the survey for buying a home, in order, are:
- It means having a good place to raise children and provide them with a good education
- You have a physical structure where you and your family feel safe
- It allows you to have more space for your family
- It gives you control of what you do with your living space (renovations and updates)
- Paying rent is not a good investment
The Myers Research and Strategic Services Survey – Top 5 reasons given in the survey for buying a home, in order, are:
- Provides a stable and safe environment for children and other family members
- It means the money you spend on housing goes towards building equity, rather than to a landlord
- Creates the opportunity to pay off a mortgage and own your home by the time you retire
- Creates the opportunity to live in a neighborhood that you enjoy
- Allows you the right to decorate, modify and renovate your home as you see fit
In a recent Forbes.com article, John E Girouard said the following:
“My answer to those who ask whether now’s the time to buy a house is that the American Dream is and always was alive and well. It has nothing to do with the direction of housing prices but everything to do with your financial situation, income stability, ability to shoulder the costs, and if the home you have your eye on is your version of the American Dream—a home you love that you hope to live in for an extended period.”
In the current market, many homeowners are not happy with the value of their home. It isn’t worth as much as it was 3, 4, 5 years ago, and this is preventing many people from moving on with their lives. Don’t lose sight of the fact that owning a home is often more than a financial decision.