5 Life-Changing Realities of Owning a Home

Getting into homeownership can be a wild ride, but it’s a total game-changer compared to those days of renting. I hated renting! Our first apartment was a 3 bedroom, 1 bath flat on the 2nd floor with an elderly lady under us. It was owned by a distant relative (one of my Grandparent's relatives) and it was cheap, even back in the day.

But it also had few electrical sockets (one bedroom had zero and I'd have to plug in the coffee pot on the floor next to the refrigerator), it had dusty hardwood floors that couldn't be cleaned (no matter what we did, white socks were always dirty), no A/C (we had to use window units and hope there wasn't an electrical fire), and the heat was oil heat and was very expensive. The good thing is that the elderly tenant downstairs was hard of hearing. After a party one night, she asked me if we were home because she said she hadn't heard anything. I don't think she was being sarcastic.

We got married young and were in our late teens. I had a good job and my husband was still trying to decide what he wanted to do when he grew up (he never did - he's an ex). We had fun parties and there was a White Castle just steps away from our back door, but after a hefty oil bill after one brutal Chicago winter, we wanted to move out of that old apartment.

We found a place that was much newer - almost brand new - and it was a completely different way of living with a normal amount of electrical sockets, air conditioning, and a regular furnace. It also cost three times the rent of the prior apartment, but it was worth it and the different heat made up for some of it.

If you don't like renting like I didn't, it might be time to consider getting a place you own. Sure, you’ll face some unexpected plumbing mishaps, but you also get to unleash your inner designer with paint colors. You can have pets without sneaking (unless you fall in love with a condo/townhouse where pets aren't allowed - but move on to find a place that allows them). So, if you're thinking about taking the plunge into owning your own place, it’s a good idea to get familiar with the changes ahead. This way, you can roll with the punches and make your transition smoother!

So let's dive into the exciting world of homeownership! Picture this: you're finally saying goodbye to those rental days and hello to your very own place. It's a huge milestone, and it comes with a whole bunch of changes that might catch you off guard if you're not prepared. But don't worry, we've got your back! We're here to give you the lowdown on what to expect when you make the switch from renting to owning, so you can navigate this new adventure like a pro.

1. Building Wealth Through Equity

First things first, let's talk about the money side of things. When you're a renter, it can feel like you're just throwing your hard-earned cash into a black hole every month. But when you own a home, those monthly payments are actually working for you! It's like you're investing in your future with each mortgage payment. That's because you're building something called equity, which is basically the part of your home that you truly own. As you pay off your mortgage and your property value goes up, your equity grows. It's like a secret wealth-building superpower!

This is how we've been able to move from Illinois to Arizona and own a home we love more than any other. And we were able to do this by upgrading homes, starting with a cute little starter home with 3 bedrooms and 1 bathroom. We stepped up multiple times over the years until we got where we are now.

**Fun Fact:** According to Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), homeowners typically have a net worth that’s about 40 times greater than renters, thanks to the equity they build and property appreciation.

Yun explains, “Homeowners’ wealth tends to rise steadily, while renters miss out on that opportunity. If you want to start building wealth, jumping into the housing market sooner rather than later is the way to go.”

**Tip:** View your mortgage payment as a long-term investment in your future. Sure, there are costs involved in owning a home, but it also opens up great opportunities to grow your wealth over time.

2. You’re in Charge of Maintenance

One of the first things you’ll notice when you shift from renting to owning is that you’re now the go-to person for all the maintenance and repairs. As a renter, you probably just called your landlord to deal with a leaky faucet or a busted appliance. But as a homeowner, you’re now both the tenant and the landlord, which means you’re on the hook for everything, from fixing the HVAC to mowing the lawn.

This can be different if you purchase a condo or a townhouse. They are all run differently, so you'll need to find out what repairs are covered by the HOA and management. They will usually cover exterior items (but normally nothing inside of a fence or private area), and some places will cover roof repair and others won't. You will still need to purchase insurance for the interior of the unit, it's similar to Renter's Insurance. 

**Tip:** Start putting together an emergency fund for home repairs. Experts usually suggest saving about 1-3% of your home’s value each year for maintenance. According to a 2023 survey by HomeAdvisor, homeowners spend an average of $3,192 a year on maintenance and repairs.

3. Your Space, Your Lifestyle

One of the coolest perks of becoming a homeowner is the freedom to make your space truly yours, without asking for permission. You can finally paint those walls any color you like or swap out light fixtures to match your vibe. This is your chance to create a living space that reflects who you are and what you love.

We were able to paint our first apartment, and I remember painting over some old wallpaper (I probably would have kept it now although I can't remember the condition of it). But our second apartment had white walls throughout and we could only paint with permission. Since it was new and clean, we didn't bother.

**Tip:** Before you dive headfirst into big renovations, take some time to live in your new home. Getting a feel for how you use the space will help you make updates that are practical and fit your lifestyle.

We already talked about pets. I grew up with dogs and couldn't wait to get my first place to get a cat. Then we got another one. I don't remember if our first lease allowed it, but I don't think our second rental did. I would cringe if I had to call for a repair and hope the owners or maintenance people didn't see or hear the hidden cats and the catbox.

4. Community Ties That Bind

Something interesting happens when you buy a home - you suddenly care a lot more about your neighborhood. Those community board meetings you used to scroll past on Facebook? You might find yourself actually attending them. Local school board elections? They matter now. That's because your home's value isn't just about your property - it's tied to the entire community.

Getting involved in your neighborhood isn't just about protecting your investment (though that's important). It's about building relationships with people who share your corner of the world. Whether it's joining the neighborhood watch, attending block parties, or just chatting with neighbors while walking your dog, these connections make your house feel more like home.

I realize there are long-term renters and some of them have kids. But renting is a more transient way of life and establishing roots in an area isn't as easy as it is when you own your place. Read my blog post "Settling In: How to Foster a Sense of Community in Your New Neighborhood" for tips on how to feel a sense of home in your current area, wherever you live.

**Tip:** Consider joining local community groups or going to neighborhood meetings. This way, you’ll stay in the loop about what’s happening in your area and get to know your neighbors better.

5. The Predictability Factor

While your property taxes, insurance, and maintenance costs can vary, one of the perks of having a fixed-rate mortgage is that your monthly mortgage payment will stay the same if you have a fixed-rate mortgage. This kind of predictability is a nice change compared to the surprises of rent increases every time your lease is up for renewal.

**Stat:** A report from CoreLogic showed that average rent prices went up by 2.4% year-over-year in October. Although rent growth has slowed down in 2024, it comes after two years of significant hikes.

**Tip:** Remember that while your mortgage is fixed, property taxes and insurance premiums can fluctuate, so make sure to include these in your budget.

Embracing Your New Homeowner Lifestyle

The shift from renter to homeowner is a journey that requires adjustment, learning, and sometimes a healthy sense of humor. You'll make mistakes (like DIY flops), but you'll also experience the profound satisfaction of building something meaningful - both financially and emotionally.

Success as a homeowner comes down to three key things:
1. Having adequate emergency savings for those inevitable surprises
2. Being willing to learn and adapt to new responsibilities
3. Taking a long-term view of both the challenges and benefits

Making the jump from renting to owning is about way more than just changing your address; it’s a whole new way of looking at your finances and building wealth, handling home maintenance, having the freedom to create the space you've always wanted, getting involved in your community, and creating stability. Yes, the responsibilities can feel a bit heavier, but the perks of building equity, personalizing your space, and enjoying greater stability make homeownership a truly rewarding experience.

By understanding these changes before you buy, you can get ready for what’s next and make your transition to being a homeowner as smooth as possible. With the right mindset and tools, moving from being a renter to an owner is definitely a change worth making! Call me at 480-906-1500 and I can help you make the decision and answer any questions you might have.