Why Own a Home Instead of Renting?

The choices:

A. No landlord rules
B. Peace of mind and security
C. Investment and building equity
D. Decorating/home design

After many many years as I renter, I finally bought a home.

Since then, I’ve gone through buying, owning, maintaining, paying for two East Bay  homes, the first which I regretted. Although at the time, it seemingly met every attribute on my “checklist” (much like a relationship where the checks may not sum up to bliss.) 

I know both the thrill of landing in a new place and the even bigger thrill of calling the landlord to report “OMG the sink is overflowing, send a plumber.” For me, the answer is “all of the above.” Even though that wasn’t one of the choices.

To achieve A through D means a strategy for buying at the right place and right time. To elaborate:

A. No landlord – Sure you’ve got neighbors and the people waiting for your mortgage payment (unless you’re a happy cash buyer).

B. Peace of mind – You’ve got somewhere to go back to, if you’re a wanderer, and somewhere to grow old without the possibility of eviction…as long as the property taxes, payments, and upkeep on the house you buy is sustainable.*

*I keep my eye on great places to live all over to offer clients ideas for where they might settle down outside of our core Bay Area. You’d be surprised how many affordable towns and cities there are only 15 minutes to Berkeley!

C. Investment – Do yourself a favor and hold out for a place that has some potential to rent part of it or space for friends / family to move in. Even if your house doesn’t appreciate unless you’re located somewhere with a proliferation of rentals, having the option to make extra cash if need be will help with B. And….

“If you receive rental income from the rental of a dwelling unit, there are certain rental expenses you may deduct on your tax return. These expenses may include mortgage interest, property tax, operating expenses, depreciation, and repairs.” The IRS

D. Decorating/home design – If D is important to you, especially your home exterior color, if you’re looking at a house that has an HOA, be sure to know how they control what you can and can’t remodel or even colors you can use. Or if buying a historically designated property, also know if the town / city / HOA has guidelines (or fees) around what you can and can’t remodel. This information should appear in a disclosure.

Ownership as Freedom

So to re-frame my “all of the above” statement, when you strategize the right property purchase, you’re buying freedom above all else:

A. Freedom to live how you like without constraints from the owner.

B. Freedom from uncertainty.

C. Freedom from less passive ways of making money along with the ability to exchange your home to enjoy world travels.

D. Freedom to express yourself and create an environment you’ll love.

Yes buying the wrong property can be more albatross than soaring eagle.

Yes renting gives you the freedom to put your stuff in storage and hit the road with no expenses other than your basics (plus the storage unit). The nomadic life can be amazing for many.

Renting frees you from home maintenance and property taxes.

Buying these days is expensive in the Bay Area. There might also be insurability concerns if the house doesn’t check all the boxes of being updated to an insurance provider’s satisfaction, outside of a natural hazard zone.

But if you the grounding of “home,” crafting a strategy to buy a home that can also pay for itself, has rental potential if need be, and will appreciate can give you even more feeling of freedom to truly enjoy your journey.