For most people, the decision to purchase a house is the largest financial decision they will ever make. Many consider home ownership as part of the American dream, while others look at it as a money pit. When considering home ownership, there are various pros and cons to evaluate before making a purchase.
For many renters who do not own the property that they live in, there’s peace of mind that comes with knowing that they are not responsible for maintenance or repairs that are needed on the home. From leaky faucets to a roof that needs to be replaced, there can be a number of additional expenses that are needed throughout the year to maintain a safe and functional living space. There’s also the added cost of homeowner’s insurance, association fees, taxes, and interest from a home loan. For many households, this can make it difficult to afford basic necessities or create long-term financial goals.
Others enjoy the convenience of picking up and moving at the drop of a hat with a rental property, which allows them more freedom on relocating based on their lease. Homeowners are often bound to their home and are not able to move until the property sells.
Another concern with home ownership is that there is no guarantee that the property will increase in value. Although it may seem like a wise investment initially, it can be impossible to predict if the homeowners will make a profit after several years.
Most people consider home ownership a wise investment that should be made due to the long-term stability and wealth that it can offer. With a down payment made, the monthly payments on a house, condo, or townhome can often be more affordable than renting and is significantly lower in the cost each month. It’s also a good investment because most properties increase in value over time if they are maintained well. The equity that is acquired also makes for a long-term savings plan that can give you the opportunity to borrow against your home if the expenses are needed for an emergency or to make other investments.
One of the main advantage of home ownership that can truly be enjoyed is the freedom to customize the space and allow it to display your taste or style. Homeowners are able to determine the design of their landscaping and custom features that are available on the property for choices that can increase the property value. Ultimately, owning a home is an ideal way to settle down and feel most comfortable in a property that can increase your personal wealth with time and allow you to find your place in a specific community.