Advantages to being a new homeowner

More than 2.5 million people became first-time homeowners last year. Like graduating or getting married, this life-changing event will usher in a new chapter in their lives. Once new homeowners have their house keys in hand and prepare to move furniture into their new place, one question they may find themselves pondering is, “What happens now?”

One major advantage new homeowners will enjoy is the ability to personalize and decorate their house; renters are often restricted in this respect. Walls painted in a rented home will likely need to be repainted in their original color when the renter moves. Remodeling the interior is an investment a renter will never recoup. In contrast, homeowners have the freedom to strip the interior bare and rebuild it entirely, investing in remodels and upgrades that can pay off in the long run.

“Closing on a property for the first time is a tremendous accomplishment and represents the hard work and responsible choices of the new owner,” said ORRA Chairman of the Board of Directors Mike McGraw, of McGraw Real Estate Services. “When you invest in your future through homeownership, the possibilities are endless. It’s a rewarding experience through which families build lives and memories, as well as their financial futures.”

Over the long-term, owning a home helps people dramatically increase their net worth. The most recent data from the Federal Reserve Board shows a homeowner’s net worth is 46 times that of renter’s. Homeownership is how many American families begin to accumulate wealth.

Even given the challenges of today’s market, people who bought within their means with the intent to stay in their homes for more than a few years have the opportunity to build financial stability into the future. A fixed-rate mortgage might last 15 to 30 years; renting is forever.

Even so, purchasing a house goes much deeper than dollars and sense analysis. Home is a place of comfort and security. Owners don’t move as frequently as renters so it encourages stability. Most people don’t want to uproot their families and disrupt established friendships by leaving the community they’ve invested so much in emotionally as well as financially. Homeownership isn’t for everyone, but for over 200 years millions of Americans have owned homes and have enjoyed the benefits. McGraw said this has not only strengthened families, but also has bestowed immeasurable benefits for individuals and the country as a whole.

—Courtesy of ORRA