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Transformative Powers of Homeownership
December 6, 2017
Homeownership is transformative. Paramount in the transformation is: control, wealth creation, discipline and pride.
Transformation #1 is Control. It allows you to control the costs of putting a roof over your head. Transformation #2 is Wealth Creation. It creates wealth through appreciation in the value of your home. Transformation #3 is Discipline. It teaches you a form of discipline. To avoid the negative consequences of not making timely monthly housing payments (mortgage and co-op or condo charges) you will establish a budget to prevent frivolous purchases. Transformation #4 is Pride. Pride is instilled by a sense of accomplishment. Children (if any) will learn valuable lessons from you about what it takes to acquire, maintain and preserve a piece of the "American Dream".
Unfortunately, the transformative powers of homeownership can not magically make you into an economically prudent person. Some homeowners will view infrequent and necessary increases as a burden and arbitrary; nonetheless, these increases may be critical to maintain and preserve everyone's co-op or condo unit.
The financial lessons learned from homeownership combined with the self-esteem earned through being financially disciplined and the sense of security that comes from homeownership, is a transformative combination.