If you’ve been thinking about buying a home, it’s important to consider both the advantages and disadvantages of homeownership. Here are some of the main ones.
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I ran into a funny card I wanted to share with you today. Take a look at the video above for a picture of 'the young couple that waited for the price of real estate to come down.'
The fact of the matter is that the price of real estate has appreciated gradually and regularly over the years. There was a lapse in 2006 with about five years of declining real estate values, but over time, real estate definitely increases in value. So what are the advantages and disadvantages of owning real estate?
Let’s start with the advantages.
When you own a home, you have greater privacy, it will tend to increase in value over time, and your costs are predictable and more stable since you will have a mortgage based on a fixed interest rate. The interest on your mortgage and your property taxes are both tax deductions. Finally, there is the pride of homeownership and the sense of community.
As a homeowner, you have more privacy, predictable expenses, and the pride of homeownership.
As for the disadvantages, remember that it’s a long-term financial commitment. You’re also responsible for all the maintenance in your home and you’re tied to one particular area. Additionally, while mortgage payments are generally fixed, they can be higher than rent payments. Buying a home also requires a down payment, closing costs, and moving expenses.
If you have any other questions or you’d like to examine more of the advantages and disadvantages of buying a home, give us a call or send us an email. We’d be happy to help you!
