Home Buyers Advisory Blog

RENT or BUY? 4 Startling Benefits of Homeownership

Posted by Aidan-John Rothman on 03 Oct 2018 11:40:50 AM

Don't ignore the facts... research continues to show that homeowners and their families achieve significant benefits if they own their home compared to those that rent.

To understand why this is the case, consider that homeownership...

  • Generates wealth for homeowners and their families
  • Results in better educational and behavioral outcomes for your children
  • Improves physical and mental health for homeowners and
  • Builds stronger and more engaged communities

If you are currently renting and want to find out more you can join us at one of our free financial freedom seminars or read on to get insight into the detailed research.

 

1. Homeownership is good for your pocket

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“Homeowners enjoy substantial economic benefits. Homeowners can generate substantial equity in their homes through making mortgage payments on their bond and/or by the possible increase in value of their property. This equity can be used to make home additions, fund education for their children or start a new business.” – Habitat for Humanity

In the guide you can see how buying a R500,000 house vs renting for R4,500 per month will leave you R1.5 million wealthierAnd after paying off your home loan you will not have to pay bank instalments anymore.
 
If you rent for 20 years, in the end you will have nothing and the rent will still keep going up every year.
 
 

2. Owning a home of good for your children

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Children of homeowners are less likely to have to move home or school and so have more stable childhoods. This has substantial benefits.
 

Homeowners Children vs Renters Children

Math achievement scores

9% higher

Reading achievement scores

7% higher

School drop-out rates

2.8% vs 11.7%

Give birth by age 17

4x lower

Sources - Haurin, Parcel, and Haurin (2002) & Research Institute for Housing America (2012)
 
Homeowners are more likely to be able to afford to give their children a tertiary education. So, their children have higher earning potential than children of renters.
 
 

3. Owning a home is good for your physical and mental health 

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People who own a home move less frequently and so tend to create more social ties and lasting relationships.

Homeowners have an increased positive outlook on life and report higher levels of life satisfaction.

Owner occupied homes are better maintained and so owners are healthier as they are less likely to suffer from respiratory and cardiovascular diseases and risks of home injuries.

 

4. Homeownership is good for your community 

 
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Homeowners show higher levels of civic participation in their communities and are more likely to vote.

They also move less often - this creates a greater sense of responsibility and care toward their homes and their communities.

 

Do you want to start building wealth for you and your family?

 
Find out if you are financially ready for homeownership by completing a home buyer readiness assessment.
 
The assessment will reveal:
  • how much you can afford to buy for;
  • house prices in the areas you are interested in; and
  • your likelihood of getting a home loan.

I want to find out it I am home buyer ready

Your assessment is free and there are no obligations.

 

Topics: Renting vs buying, Financial Freedom