Buying a home of your own is a big deal. Not only is it a financial commitment but a commitment to your future self. The many benefits of homeownership include the ability to create a space that is truly your own where you can enjoy hobbies and put down roots. However, if you’re afraid to commit, then homeownership may seem like a scary notion that tethers you to a place when you may not feel ready. This is an understandable hesitation that causes many to doubt if they should start the journey towards buying a home. In this blog, we’ll discuss why homeownership doesn’t have to necessarily mean “settling down.”
One option that many homeowners have is sharing their homes with others. Turning your space into a vacation spot for others can give you opportunities to take your own vacations more often. In 2020, there were over 4 million hosts who made their homes available through online platforms in the United States. On average, these hosts made $7,900 annually, which means disposable income to jet off on your own. The stability of that comes with a fixed mortgage payment each month combined with extra income from the home lets you feel less stifled and more adventurous. If you’re looking for a more permanent solution, you can also rent a room in your home. Having a permanent tenant may give you better peace of mind while being elsewhere.
If you want to remain a homeowner but are looking for even more freedom, turning your home into a rental property is something that you may want to consider. Being a landlord can certainly help you build equity without being tethered to your property. Before getting started, there are certain precautions that you’ll want to take such as checking with your mortgage company, local city/county restrictions, and homeowners’ association, if applicable, to make sure you’re allowed to do so. You may also need to switch your homeowner’s insurance to more comprehensive coverage. While there is a lot of responsibility with renting your home, it is an option if or when you feel that you’re ready to chase other opportunities while keeping your house.
Finally, you can always try and sell your home and move on. The most common home loan is a 30-year fixed mortgage, which can lead to the misconception that you have to stay put for that long if you decide to buy. However, this is not the case. In fact, the general rule of thumb is that it’s best to stay in your home between five and seven years if you’d like to build equity before selling. It’s rare for homeowners to stay in their homes for the entire duration of a 30-year mortgage. A recent survey found that, in 2018, most homeowners stayed in their homes for an average of 13 years before selling. While homeownership is a commitment, there can be a lot of freedom that comes with it as well. Owning a home means independence, potentially creating financial freedom, and having options for your future.