Homebuying education For homebuyers

Is homeownership the key to financial happiness?

Frank Rohde

We all strive for financial freedom. We constantly understand the importance financial freedom has on being able to live a life of satisfaction and happiness. But for renters - those who don't experience the same security that homeowners do – financial freedom can be an especially daunting thought.

When faced with bills from your landlord that increase each year, setting aside money towards your future seems almost impossible. In this post we explore how you as a renter can take important steps towards achieving financial freedom. As a homeowner you can know that you have worked hard to create a secure and stable future – one where you achieve true joy through actively taking charge of your finances!

Start with a budget.

First and foremost, budgeting is key. As a renter you likely have a variety of different bills to pay each month, ranging from rent, utilities, grocery bills, transportation costs, student loans, and more. Keeping track of all these expenses can be overwhelming. That’s why it's important for you to sit down and draw up a budget with all your expected expenses so that you know exactly what is coming in and out of your bank account each month. This will help you stay on top of your finances, as well as prevent any unexpected costs from taking an even bigger chunk out of your wallet than usual.

Save for a down payment.

Once you have an established budget, you will be in a much better place to work towards your financial goals of homeownership. The next step is to start saving for a down payment for a mortgage, usually an amount of 10% - 20% of the home’s purchase price. This amount can often seem unattainable, on top of your other expenses and will likely take years to get anywhere close to what is required. As we discuss below there are other options than the traditional paths to buying a home. Keep reading and discover what Ownify has reimagined as a path to homeownership. This means you can buy your home with only 2% down.

Determine which homeownership structure is right for you.

Owning a home is an important goal for many people trying to stop spending money on rent. However, the type of ownership structure can impact your feelings of financial freedom and happiness in different ways. Let’s explore each option:

Owning a home with a mortgage.

Using a mortgage to buy a home can be financially burdensome. In order to buy a home with a mortgage you are often asked to save about ten to twenty percent in upfront cash to cover the down payment, the fees and costs to purchase the home. Furthermore, you will then have to borrow the remaining amount of the money from a bank or financial institution. You will be paying the loan back over a set period of time, usually 25 - 30 years. Having such long-term debt may initially feel like a burden, even causing a sense of financial anxiety. Yet, owning a home with a mortgage provides the opportunity to build equity in the home. As the home’s value increases over time, you can potentially sell the home for a profit. Additionally, owning a home can provide you a sense of stability and comfort, which can lead to a sense of financial freedom and happiness.

Owning a home through a rent-to-own program.

A rent-to-own program allows you to rent a home with the option to purchase the home at the end of the rental period. There are some things that should be taken into consideration when deciding if such an option is right for you. The rental payments can often be higher than a regular rental. There may be additional fees associated with the purchase of the home at the end of the rental term. Additionally, if you decide not to purchase the home, you may lose the money that you have paid towards the home. This option may not provide a sense of financial freedom and happiness as you may be locked into a contract that is not beneficial for you. In the end you don’t own any portion of your home. You are still a renter until you buy your home with a traditional mortgage at the end of your rental term.

Owning a home through Ownify.

If financial freedom and happiness means having more control over your finances instead of your money sitting in someone else’s bank account, then there is now a third option to homeownership - fractional ownership. Unlike a mortgage or rent-to-own model, Ownify is the best of both worlds. Ownify allows you to own and build equity in your home without having to put down twenty percent upfront. In addition, with Ownify each month you can purchase an incremental portion of the home, and then pay rent on the remaining portion that you do not own. This option allows for factional ownership without the huge upfront down payment. Also, fractional ownership may allow for lower monthly payments than a traditional mortgage. Unlike other similar programs, if the home value increases, due to home improvement or appreciation, you may benefit from the increase in your home's value. Owning through Ownify allows for more financial flexibility since the maintenance and repair costs of the home are handled by Ownify and not you. The Ownify option may lead to financial freedom or happiness because a majority of your financial funds are not tied to the equity and maintenance over the property. Utilizing the Owify model, you get the benefit of financial flexibility and the joy of homeownership.

Conclusion.

In conclusion, owning a home certainly can create a sense of financial freedom and happiness, but it is important to consider the best option for you in order to make the move from renting to becoming a homeowner. Remember that home ownership is an investment that goes beyond dollars and cents. It’s a decision that can bring immense joy to you, your family, and even the community you live in. Living in a place where you can create lasting memories with your loved ones has immeasurable value when it comes to cultivating happiness. From holidays spent together with extended family to regular weeknights filled with laughter over dinner; the little moments add up. These memories will become some of the best ones you have of your time living in your home. Ownify is ready to help you on your journey of owning your first home!