There are many reasons to own your own home - including such as if you are in the process of extending your family, or relocating to a new place. However, home ownership comes with responsibilities, and it is essential to go through the main advantages and disadvantages of owning a home, before settling down for one.
Pros of owning your home
- The buyer can execute complete controls over the home upgrades and improvements.
- It builds equity for the buyer.
- The value of home increases with the increasing life of the mortgage.
- The different taxes, like property taxes, mortgage taxes, etc., are eligible for tax deductions.
- A positive payment history increases the credit score of the person.
Cons of owning your home
- The ownership process is complex and may take significant time.
- All the maintenance and repair costs are managed by the owner only.
- The buyer has to pay the different taxes, which add to the home costs.
- It is a long-term investment.
- Owning a home requires high costs for payment, closing fees, etc.
Wrapping Up
It becomes important to consider both the pros and cons of owning a home, before investing in one. Understanding these aspects will help you to make the right decision, even if you’re dealing with home ownership for the first time. A careful and informed decision can make owning your dream home worthwhile.
FAQs
How to finance the purchase of a new home?
It is easy to finance the purchase of a new home by making some down payment and covering the rest in the mortgage. The downpayment is around 3% to 20% of the total home cost. The availability of multiple alternative funding sources can eliminate the burden of a down payment when you’re paying for a bigger home.
Is it ok to own a home?
The decision to purchase a new home depends on the person's condition. While owning a home has multiple benefits, it comes with specific issues which should be appropriately monitored. Hence, it can be ok to own a home-based on the person’s needs, conditions, and budget.
Do I have to pay the property taxes?
Yes, homeowners need to pay their property taxes. It is for the use of facilities like emergency services, roads, schools, etc. Further, the amount of the property taxes depends on the location and mortgage terms of the home.
Does my home appreciate value over time?
Yes, in most cases, it is observed that the home’s value appreciates over time. Some of the factors contributing to this appreciation are changes in real estate, neighbourhood improvements, home renovations, etc.
Can I rent my own home?
Yes, it is easy to rent your home to the tenants staying at your place for the agreed time and terms. You can go for the legal agreement, which secures both parties.
