Memories: a Perks of Homeownership
A mortgage is a big commitment. At best, you’re promising to pay a bill for the next 10 years of your life, but more likely than not, you’re committing to 30 years of monthly payments. It’s enough to freak out even the most financially savvy potential homebuyers.
How many people can truly be happy signing on to this much debt? Well, the grand majority of them, actually.
Bank of America’s latest Homebuyer Insights Report shows that most homebuyers are happier owning than they are renting – 93 percent of them, in fact. More so, the majority of them (83 percent) believe that after owning, they wouldn’t feel comfortable going back to renting.
Why Does Owning a Home Make People Happy?
The Bank of America Homebuyer Insights Report identified several reasons why owning a home makes people happy.
The most notable theme throughout the reasons is memories. 89 percent of homebuyers believe that owning a home is a way to make lifelong memories with loved ones. And 69 percent of them feel that it would be difficult to move from their home because of the memories made there. It’s easy to create attachments when you stay in one place; whereas, when you rent, you move from place to place more often making it more difficult to form memories.
As much as buying a home is a financial investment that allows you to plan out your future, more than half of people view a home as a place to make memories instead.
Some of those memories come in the shape of hobbies. Homeownership has allowed 76 percent of buyers to explore new hobbies and activities, like grilling, gardening and interior design.
How Do You Become One of Those Happy Homeowners if You’re Not Ready Yet?
A mortgage is a big commitment, but renting a home is a longer commitment. Rather than limiting your monthly payments to a mortgage term, you’re agreeing to pay a monthly rent payment indefinitely. The only stopping point is when you buckle down and purchase a home or move in with someone who has already made that kind of commitment.
It’s understandable that applying for a mortgage is scary. Not everyone is ready to take that leap. However, you should put a cap on your renting. Rather than finding yourself in a cycle of renting new places with no end in sight, consider renting to own.
With a rent to own agreement, you’re limiting your rental term to a maximum of 2-3 years, while keeping the door open to get a mortgage and end the cycle sooner.