Pros & Cons of Buying a Home
Welcome back to my two-part blog series on renting vs. buying a home! This week’s post takes a look at the pros and cons of buying a home. It’s no secret that I think buying a home is more beneficial than renting for most people. Take a look at the pros and cons of buying a home below and start thinking about which option is best for you!
Pros of Buying a Home:
- Owning your home builds equity and it’s an asset that can be sold down the line. This means that if the house appreciates in value, you will make a profit when you sell the home.
- Even if your home doesn’t appreciate in value (which is highly unlikely) you still have an asset you can sell when it is paid off.
- Your monthly mortgage payments are stable, as long as you’ve opted for a fixed rate mortgage. This means that you’ll be able to budget the exact amount of money you need per month for, at least, the next five years.
- You can make any décor changes and home improvements you want – plus you’ll reap the rewards like increasing the value of your home which helps ensure your home will net you a profit when you sell it.
- You’ll be able to take advantage of tax breaks specifically for homeowners. This can offset the cost of owning a home.
- You’ll be able to use your home as an investment. Once you have established enough equity you can leverage it to buy another property, finance a new business idea, or to renovate your home and raise the value.
- You will benefit from a more stable living situation. Not only can you make any changes you want without asking for permission, you have a sense of freedom and control when you’re a homeowner.
- It’s easier to settle into a community when you own a home because you have more invested it and know you’ll be there for several years.
Cons of Buying a Home:
- Buying a home requires a down payment which can be hard for many people to put together.
- It’s not as easy to leave in a hurry if something bad happens like if you lose your job or need to relocate in a hurry.
- You are responsible for any repairs and maintenance your home needs, like fixing the furnace or backed up toilet. Repairs are often unexpected and can often catch people off guard.
- (http://www.dewarrealty.com/blog/closing-costs-101.html) You have to pay for more that just the mortgage. Things like closing costs and lawyers’ fees need to be paid when you purchase & property taxes need to be paid each year.
- Homeowners’ insurance is mandatory and is something that will need to be paid along with your mortgage payment.
What made you decide to purchase a home rather than renting one? Share your experiences with us below!Posted by Greg Dewar on