Home Buyers Guide from Tammy Mitchell Hines & Co. Workbook for Home Buyers | Page 8

Good Reasons For
Home Ownership
Pride in Owning: Most people buy homes to have control over where they live. Although investment features
are important, the psychological reasons for buying—the satisfaction of owning and the
freedom from paying rent—are at least as important. In a recent National Association of
Realtors (NAR) survey of 6,000 homeowners and 2,000 renters, 76% of owners and of
renters considered pride of ownership an important reason for buying a home.
Dislike Paying
Rent:

Almost 7 in 10 home owners admit that their dislike of paying rent was an important
factor in their decision to buy. Although renting offers a lifestyle that’s nearly maintenance
free, it offers you no equity, no tax benefits, and no protection against regular rent increases.
Writing a rent check is just like watching your hard-earned money slip away.

Good Investment: 76% of owners and 69% of renters said the investment aspect of ownership was important.
Tax Advantages: Property taxes and qualified home interest are deductible on Schedule A for itemized
deduction.
Long-Term
Appreciation:

People consider home ownership a good investment because they view it as a long-term
venture. Historically, home prices have risen at relatively steady rates. For example,
existing home prices rose an average of 4% per year between 1980 and 1992.

Leverage
Investment:

People borrow a great deal to buy a home, yet they receive the full benefits of price
appreciation. In the long run, investments in homes greatly outpace inflation.

Source of
Savings:

Home ownership always has and continues to comprise
the single largest source