Hidden Benefits of Home Ownership

Categories: Resources & Tips
New Homeowners Holding Keys to House

If you’re on the fence as to whether to buy a home or not, take a moment to read over the following benefits to homeownership.

When you are looking into the possibility of purchasing your first home, you are probably looking at common benefits such as tax deductions and the pride of ownership that comes with having a space that is truly yours.

However, those are far from the only major benefits that go hand-in-hand with owning a home.

A number of hidden benefits come along ownership, many of which can serve as an incentive to kick your landlord and your lease to the curb and take the plunge into buying your first home.

These hidden benefits include:


Homes are considered a steady investment because the value steadily rises while the debt drops. The median home price has risen steadily every year in the United States since 1968. Typically, the value of a home appreciates at the rate of inflation plus 1 or 2 percentage points, though sometimes it’s a greater increase than that. For example, if you can make a 10% cash down payment with an annual home appreciation rate of 5%, you can expect a 94% return on the cash after three years of owning the home. After five years, the return increases to 225%, and after 10 years, you might be looking at a 623% return depending on the market.

Stable Monthly Payments

If you’re used to renting, it’s likely you’re also used to the price of your rent going up each time you renew your lease. When you rent, you realistically have no idea what you’ll be paying in several years to occupy the same space. When you purchase a home with a fixed-rate mortgage, you will essentially have the same payment every month for up to 30 years. Even if you have an adjustable rate there is a cap and you can figure out the maximum mortgage payment you could be looking at several years down the line.


The portion of property that’s actually owned, or equity, also rises over time. As you make your monthly payments, you get one step closer to fully owning the property you occupy each year you live there. You can’t build equity if you are a renter, and no matter how many years and how much money you invest into keeping a rented roof over your head you will never be any closer to owning that space than you were the day you first moved in. For example, you could rent a house for 10 years, spend upwards of $1,000 a month to live there, and when all is said and done, you have essentially thrown $120,000 away and have nothing solid to show for it. After 10 years at that rate, you could have built enough equity to fully own a property. When many builders, including LGI Homes, offer brand new homes for less than that, it really puts it into perspective.


Interested in painting your kitchen? Have you always dreamed of having a koi pond in the backyard? If you rent, you’re unfortunately out of luck on both accounts. Renting offers little-to-no freedom when it comes to design and décor beyond some landlords offering to paint an accent wall in one room upon move in. When you own, you can essentially do almost anything you want with your home. You can install tile to your heart’s content in the bathrooms. You can cover the walls with every wallpaper design available at the hardware store. Any plans you have ever had for your dream home” can become a reality, something that could never happen when renting.

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