6 Top Reasons People Decide to Buy a Home and a Few Good Reasons Not to Make the Move

Are you thinking about buying a home? Well, that shouldn’t be too surprising when you consider about 65 percent of households are occupied by their owners, according to a 2019 U.S. Census Bureau report.

Some top reasons people opt to buy instead of rent include pride of ownership, appreciation (build equity), tax deductions, mortgage interest deductions, stability and security, pets and the ability to make the home their own without dealing with landlords, deposits and rent increases.

In addition, they may want more space, more privacy, or simply don’t want to throw their hard-earned money away on rent. And, for many, it’s part of living out the American dream.

Let’s take a look at some of these reasons in more detail:

1.) Pride of Ownership

This is actually the No. 1 reason why people want to own their home. When you own the property, you can customize it to your needs and make it yours. (Note: If you live in a community with an HOA, there are restrictions.)

2.) Appreciation

If you buy a property at the right price and terms, and live in it for a long period, your home will appreciate in value and you’ll build up equity. Depending on where you live and how strong the real estate market is, this can be a large amount.

3.) Mortgage Interest and Property Tax Deductions

You should talk to your tax adviser about these deductions, but for many, these tax deductions can be financially beneficial.

4.) Stability and Security

Research has shown that home ownership brings substantial social benefits for families, communities, and the country as a whole, according to a 2016 report from the National Association of Realtors. Some benefits include better health, increased charitable activity, lower teen pregnancy, higher student test scores and graduation rates, and a more positive outlook on life.

5.) Pets

Yes, our furry friends are important and pet owners want a home to accommodate them.

6.) Independence

At some point in life most people don’t want to report to a landlord. They’re done with deposits and rent increases and want more control over their lives.

Reasons Not to Buy

While there are solid reasons for owning a home, there are also reasons for not buying as well, such as making a purchase in a declining real estate market, planning a move out of the area in the next few years, or you’re uncertain of your financial future or job stability.

Other reasons not to buy a home include the cost of ownership is considerably more than renting, you’re not ready for the responsibility or because everyone else you know is doing it.

Also, before investing a lot of time filling out loan applications and searching for homes, you might want to step back a bit and consider the emotional stress that buying a home can have and decide whether this is the right time for you.

Major life events such as getting married, having children and starting a new career are among the top stressful circumstances in life, so it's important to evaluate how changes in your financial situation combined with a change in residence and living conditions, can lead to stress overload. You're probably better off staying where you're at then making a home purchase decision under stress.

Planning a Move to San Diego?

If you're planning a move to San Diego and don't know where to begin, please connect with Paul and Dean at (858) 876-7792. From getting a handle on your credit and debt to getting pre-qualified and pre-approved, we're here to help.

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