Why Homeownership?

Brick House with Red DoorThe housing market has seen a lot of changes during the past decade. There have been bubbles and busts, and now a gradual, but real, economic recovery that is causing the housing market to rise again. In broad terms, Maryland’s housing prices are steady and slowly moving upwards, and there are some modest increases in interest rates.

While some people continue to struggle with the impacts of the housing crisis, owning a home remains a good financial decision for many people. Communities benefit from homeownership through improved health and school outcomes, increased civic engagement and volunteerism, and reduced crime. For individuals and families, the ability to build wealth and equity, the pride of ownership and the freedom and flexibility that come with being able to invest in and modify a property are important.

The following reasons are why most people want to own their own home:

  • Financial stability and growth in equity – getting a fixed-rate loan means that you know what your payments will be for the life of the loan, and when you’ve made your last payment, you own your home outright.
  • Privacy and control – when you own your own home, there are no landlords and no need to get permission to upgrade, renovate or redecorate the way you want.
  • Build credit – keeping up payments on a home loan means building credit that may be important in the future, should there be large or unexpected expenses and a need to borrow.
  • Tax advantages – tax deductions are available for homeowners on interest payments that can effectively lower the cost of living.
  • Investment in an appreciating asset – while a brand new car loses value as soon as it is driven off the lot, long-term home values tend to increase (although market fluctuations in the short-term can occur).