Skip Navigation Links
Is Buying A Home A Good Investment?

Is Buying A Home A Good Investment?

Homeownership remains a core aspect of the American Dream, offering a place to live and a sense of stability, privacy, and personal achievement. It allows individuals to build equity over time, provides potential tax advantages, and offers a level of control and security that renting cannot provide. For many, owning a home is a crucial milestone, signifying financial stability and independence.

In the context of Washington State, regions like Olympia, Thurston County, and the South Puget Sound area are becoming increasingly appealing, especially for first-time homebuyers. These areas offer a blend of affordability and lifestyle that is hard to find in more densely populated areas to the north. While counties closer to Seattle might offer proximity to urban centers and job opportunities, they come with a higher price tag and a competitive housing market that can tough to navigate for new home buyers. On the other hand, Olympia and its surrounding areas provide a more accessible entry point into homeownership. Despite the lower inventory that challenges much of the housing market today, those willing to look a bit farther south might find that their budget stretches further, affording them more houses for their money and a better chance at landing a home that meets their needs without breaking the bank.

Money Saved On Rent

One of the primary differences between renting and homeownership is the potential for building equity. Paying rent is often seen as paying for a place to live without any long-term financial benefits, as these payments do not contribute towards building equity or ownership. In contrast, buying a home means that a portion of your monthly mortgage payment goes towards the loan's principal balance, gradually increasing your stake in the property. Over time, homes have historically appreciated, meaning that the equity homeowners build can become a significant financial asset. Although the initial costs associated with purchasing a home, including the down payment and closing costs, can be substantial, and higher interest rates can lead to higher monthly expenditures compared to renting in the short term, the long-term benefits of building equity in a property that tends to increase in value over time can outweigh the initial financial burdens. This makes purchasing a home a potentially lucrative long-term investment that can provide economic security and stability.

Lifestyle Benefits of Homeownership

Owning a house also allows you to tailor your living space to your personal preferences and needs. Unlike in a rental where a landlord's rules often restrict you, homeownership means you can remodel, paint, and update fixtures like cabinets and lighting to your heart's content. This flexibility extends to the outdoors, providing opportunities for expansive entertainment areas and more considerable lot sizes than what's typically available in an apartment setting. Furthermore, the privacy afforded by not sharing walls, as is standard in single-family homes, allows for a more flexible and undisturbed lifestyle, enabling homeowners to live according to their rhythms and preferences.

Tips for First-Time Buyers

For first-time homebuyers, the prospect of homeownership is both exciting and daunting. Here are some tips to help you make an informed decision:

  • Do your homework: Understand the local market and the factors that influence property values in your area.
  • Get your finances in order: Save for a down payment, carefully review your credit report, and get pre-approved for a mortgage to understand your budget clearly. Working with a local lender and realtor can also make the process seamless.
  • Consider the total cost of ownership: Factor in all costs, including maintenance, upgrades, and potential increases in property taxes.
  • Think long-term: Homeownership should be viewed as a long-term investment. The longer you stay in your home, the more likely you will see a positive financial return.

Suppose homeownership piques your interest, but you find yourself treading cautiously. In that case, we invite you to contact the welcoming agents at Olympic Sotheby's International Realty, who serve both Olympia and Lewis County. Our team is enthusiastic about meeting over coffee to explore what it will take to transition you into a residence that aligns perfectly with your needs, whether a cozy condo or a spacious single-family home. All our agents are deeply rooted in the community, boasting an extensive understanding of the area and strong ties with local lenders to ensure you receive the exceptional service you deserve.

Stay in touch

Receive home DIY projects, Thurston County market updates, local community stories and more!

  • This site is protected by reCAPTCHA see our Privacy Policy


1722 Harrison Ave NW
Olympia WA 98502


Links Column

Sotheby's International Realty® and the Sotheby's International Realty Logo are service marks licensed to Sotheby's International Realty Affiliates LLC and used with permission. Olympic Sotheby's International Realty fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each office is independently owned and operated. Any services or products provided by independently owned and operated franchises are not provided by affiliated with or related to Sotheby's International Realty Affiliates LLC nor any of its affiliated companies.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Real estate website design, development and optimization by Organic Return