Overcome the Fear of Homeownership

There are a lot of scary things in this world.  Violence, poverty, and disease are pretty high up there.  One of the biggest ones I’ve seen is change.  People go through many stages in life.  Each one is scary because we’re out of our comfort zone.  We become comfortable with the status quo and can become reluctant to improve.  My livelihood is based on one of those biggest life changes:  Homeownership.

I do not blame people for having a fear of homeownership.  This is a huge responsibility.  The obligations are not confined to financial either.  You have to mow your lawn, clean, replace water heaters, paint, and negotiate cable/internet prices six times per year.  Some people may have these responsibilities while living with their parents or renting but there’s a new level of commitment with homeownership.

Someone determined there are two sides to every decision:  logical and emotion.  This has been highly evident when I’ve seen someone consider homeownership.  I’m going to spend some time going over the logical benefits of this decision.

Logical Reasons for Homeownership

  1. Equity:  When you purchase a home, the thought process is that the value of your property will increase over time.  As you make your payments, your starting balance decreases.  You will not see instant results but after several years, you’ll have established equity.  Now you can use that equity to put down a substantial amount on a bigger home or pay off debts.  You can even increase the value of your home further by investing in renovations.  People use their equity to save for retirement.  You can’t do that through rent.  Your parents do it while you live at home.
  2. Credit Score:  Rent does not appear on your credit report.  Mortgages do.  When you make payments on this debt, you’ll just keep improving your credit.  This can lead to better rates on other debts you encounter in the future such as car loans, rewarding credit cards or even your next mortgage.  If you have low credit now, there are options to get you into a home still.  I can always help you navigate solutions if you still don’t quite qualify yet.
  3. Price per Square Foot:  Rent payments can be higher than housing payments in certain areas.  You’re not building your credit or equity.  Plus this higher payment is for lease square footage.  You get more space for your dollar when you own a home.

There are a variety of other logical benefits for homeownership.  Each scenario is different.  Even if you’re going to be in the home a short time, there may still be financial benefit.  We can talk about that all day but at the end of conversation, nothing makes sense unless you can remove yourself from your comfort zone.  Is it time to overcome your fear?  Let’s have a conversation and find out!

Jeremiah Claramunt
NMLS ID 33184