Monday, November 23, 2015

What Are the Pros and Cons of Homeownership?

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There are advantages and disadvantages of homeownership. Today, we take a look at both.

Disadvantages of homeownership
  • The potential for the value of the home to go down. I've only seen this happen twice in my lifetime: once in the early '80s and again between 2006-2009.
  • Maintenance costs. This could be anything from roofing to water heater issues to painting, among many other things. You can imagine all the things that could go wrong that you would have to pay people.
  • Flexibility. When you own a home and you have job changes, especially when you move from town to town, it can be costly and difficult to sell your home.

Advantages of homeownership: 

  • Personal freedom and pride of ownership. You can do anything you want to your home, within reason. You can't paint your home any way you wish and remodel, if you so desire, without having to ask permission.
  • Sense of stability. You know you are not going to be moving often and it gives you a sense of security.
  • Wealth building. You have the ability to gain value in your home every single year. As you pay down your mortgage, you build equity in your home. The other big picture is, most of the time, your home appreciates in value! This will give a certain amount of financial freedom in the future -- it will allow you to finance college, retirement, or handle financial hardships you may encounter down the road.
  • Tax breaks. You get to use your interest and your taxes that you pay each year to deduct from your income taxes at the end of the year. You don't get to do that when renting a home.
If you have any questions about home-ownership, or if you need real estate assistance of any kind, please don't hesitate to reach out to us. We would love to hear from you!

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