10 Reasons for Buying a Home (It’s not just about the money!)

Your home is not an investment. Seriously.

Without a doubt, your home is an asset. There is a market value attached to the bricks and mortar you call home. This market value fluctuates based on supply, demand, economic conditions and various factors that impact your home directly (eg: age, condition, and changing demographics within your community). But an asset does not mean an investment.

For instance, a vehicle is often listed as an asset — an item of value that you could sell, if needed, to cover expenses. But, like vehicles, homes are depreciating assets. (For more on why land is the high-roller when it comes to property values, please see Chapter 2 of my book, House Poor No More: 9 Steps that Grow the Value of Your Home and Net Worth. Not to brag, but it won the Excellence in Financial Journalism 2022 Book Award!).

In most cases, a person’s decision to buy a home is not motivated by money — but by emotional need. The desire to set down roots; to create stability to find community.

In 2021, while working at Zolo, we surveyed more than 2,000 Canadians on their reasons for buying a home. While financial motivation certainly made the list, the top three reasons for buying a home were not about money, but emotional and physical security.

The desire for stability (22.7%), the option to renovate or decorate without asking permission (22.4%) and a change in life circumstances, such as starting a family (21.5%), were the driving reasons to enter the property market.

To help, here is a summary of the 10 top reasons we buy a home:

1. Stability and Security: Owning a home provides a sense of stability and security as it is a long-term investment and offers a place to live for you and your family.
2. Pride of Ownership: Homeownership is a source of pride and achievement for many people. Owning a home allows you to personalize and decorate your living space to your liking.
3. Tax Benefits: While Canadians can’t deduct mortgage interest — Americans can and should! — there are other tax benefits to homeownership. Side hustlers and entrepreneurs should look into home-based business tax deductions, while investors willing to learn how to use debt as a way to leverage and diversify their portfolio can set up tax-deductible loans. (For more, check out Chapter 6 of my award-winning book, House Poor No More: 9 Steps that Grow the Value of Your Home and Net Worth.)
4. Sense of Community: Homeownership often leads to a sense of community, as homeowners are more likely to invest in their neighbourhoods and build relationships with their neighbours.
5. Stability for Children: Owning a home can provide stability for children, as they can attend the same school and grow up in the same community without having to move frequently.
6. Control Over Living Space: Owning a home gives you control over your living space, allowing you to make changes and improvements without needing to get permission from a landlord.
7. Privacy: Owning a home provides greater privacy than renting as you do not have to worry about a landlord entering your living space for inspections or repairs.
8. Investment in Future: Buying a home is an investment in your future. By owning a home, you are building wealth and creating a valuable asset that can be passed on to future generations.
9. Financial Investment: A home is often considered a sound financial investment. Property values tend to increase over time, and owning a home, or second property, can offer significant equity gains over the years.
10. Building Equity: As you pay off your mortgage — or if you are a landlord, as your renter pays off the mortgage — you build equity in your home, which can be used to fund other investments or be borrowed against for future expenses.