3 Reasons The Resale Value Of Your Home May Not Matter
If you are looking to purchase a new home, you may find yourself wondering if the home you are considering is worth the price you will pay for it. While debating this, you may come across some trending financial advice that says a home is no longer considered a smart financial investment. While it is important to assess your current ability to afford the home you are considering and inform yourself about how home ownership will affect your overall financial state, it is also important to realize that purchasing a home is more than a financial decision. It is a personal decision that involves your emotions, values, and goals. Below are three things to consider that may make the resale value of your home less important than you think.
A Family Home Is Not Primarily A Financial Investment
The approach you take when purchasing a home that you intend to keep for long-term personal use is different from making decisions about investment properties. Of course, when you are purchasing a home with the primary goal of selling it for a profit, you need to consider the cost of repairs and your ultimate resale value. However, if it is your intention to live in the home you are purchasing for the next decade or longer, its current resale value becomes less important.
Your spatial needs, lifestyle, and sense of aesthetics are unique. That means that you may prefer a home with certain features that may not be popular among other home owners, making the home more difficult to sell later. However, these features will be worthwhile if you make use of them every day while you live in your home.
While it is important to consider what you will do with your new home if you eventually have to relocate, it is also important to view your home as a tool for reaching your optimum lifestyle, not simply as a financial investment.
Home Ownership May Promote Feelings of Security
If you have been renting and are looking to purchase your first home, then you are probably aware of the many ways your relationship with your landlord can cause stress. Despite tenant rights, some people live in constant fear of their landlord refusing to make basic repairs, intruding on their privacy, and threatening eviction. If you have had a bad experience with a landlord, you may find that you have anxiety about signing leases or communicating with a landlord.
Although home ownership comes with many responsibilities, which can be stressful, you ultimately have more control over your living environment. This can help make you and your family feel more secure about meeting your basic need for shelter.
You May Be Able to Express Yourself Better
When you are renting, even if you are a long-term renter with a positive relationship with your landlord, it can be difficult to get approval for major cosmetic changes to your home. Structural changes, such as adding a room or tearing down a wall, are nearly impossible to get approved. This can make it difficult to create a space that reflects yourself and feels like your home. Even if you do get approval to make changes, you have to keep in mind that you will have to invest money in the changes that will be lost when you move.
When you own your home, you can freely make changes to it to reflect your interests, lifestyle, and general preferences. Furthermore, you may be able to recoup some of the cost of upgrades if you ever do sell your home.
While it is important to consider your financial state before really looking at homes for sale, it is also important to learn how to assess what value a home represents to you as opposed to the current market. This may make you realize that when you find your ideal home, its resale value is of little importance.