Abhinav and Shilpa, a working couple in Hyderabad, never felt the desire to buy a house until they had to leave their rented apartment last month — their third address in the last three years. Just a few months ago, they had moved into this apartment after a lot of stressful home hunting. They loved the apartment, the location, and the fact that it was so close to both of their offices. But, the landlord, who lived abroad, suddenly dropped the news that they were coming back for good and asked the couple to move out and they had to oblige unceremoniously.
Kolkata resident, Surupa, a single mother, lives with her 5-year old son and her 82-year old mother in a posh rented apartment in Ballygunge. A senior executive at a leading advertising firm, Surupa never really gave homeownership a thought. She has a cushy job and earns enough to afford a 3 BHK flat in one of the city’s top locations. But she doesn’t see how owning a home can make things different. But her mother has been trying to convince her that buying a home is not just a matter of homeownership, but it’s also about the security, peace of mind, and social respect for the long term.
And, she might be right. Many studies have found that economic security and social acceptance post-retirement depends heavily on homeownership. In fact, people who retire without a home are at a higher risk of living under stress. In a survey conducted by a clinical psychologist, Elizabeth Neil, 46% of the 1,000 non-homeowners surveyed stated that they felt inadequate because of a lack of a home. 43% said they cannot visualise themselves feeling fulfilled without a home, and 39% believed they have nothing to look forward to.
Owning a home is not only about investing in an asset, which, gives a better return than other investment options over time, but it’s also about creating a secure and comfortable environment for the future.
Here are a few scientifically proven psychological and emotional benefits of owning a home.
Homeowners Lead a Healthier Life
Most homeowners enjoy a state of peace, as they feel they are in complete control of the environment. The feeling of being in control, and the sense of pride and accomplishment in owning a property, contribute a great deal in giving homeowners and their family members good mental health.
Homeowners Also Enjoy Superior Social Acceptance than Tenants
Owning a home is always more respectable than living on rent. Neighbours feel that a homeowner is anchored to the community, unlike a tenant who might migrate. This creates a feeling of inclusion for the homeowner. In some residential communities, homeowners can access some amenities which tenants cannot, and this makes the tenant feel inferior.
Your Kids Will Be Happier
Breakups with peers because of frequent relocation can have an adverse impact on your children, leading to behavioural problems. You should not underestimate the emotional stress that your child is under because of changes in the environment. Unlike tenants, homeowners can provide their children with a stable environment that plays a key role in the emotional well-being of their kids.
Homeowners Can Enjoy a Passive Income Post-Retirement
In contrast to tenants, homeowners can earn money from renting out their homes. Renting is a steady source of income for most retired people. Even if you are not retired, your home can generate a passive income for you if you rent a space in your home that you do not use. Giving the second home on rent is a lucrative business in many cities.
You Can Have Mental Peace Knowing That Your Home Can Fund Your Emergencies
Most banks and financial institutions will be eager to give you a mortgage loan on your property if you have the legal documents of your house in place. If you are a retired person, you might need a co-borrower, who has an income source. That way, you can get easy finance at a low rate of interest. Depending on the age of the property, you can get a loan of up to 70% of the property’s market value.
Owning a Home Enhances Your Net Worth, Making You Feel More Secure
Although there are many ways to create wealth, homeownership is the most common way for the average person to build their net worth. This method of wealth creation does not require any investment know-how or business acumen, nor does it require any effort. The value of your property will grow automatically, increasing your net worth.
The best feeling of homeownership, however, comes from the joy of passing on something to your children, which can affect their lives in many positive ways.