Owning a house is a long term investment and the majority of people have a dream of owning a house. While considering for owning a house, one must consider its pros and cons then it’ll be easy to choose that home ownership is right for him or not.
Pros of Home Ownership
Home ownership comes with long term benefits such as security, equity and potential growth as your personal wealth. With the passage of time, the homeowners can build equity and the equity can be increased by renovating or upgrading the home, appliances and updating its curb appeal. Every single dollar spent on the house will towards the ownership-increasing equity.
There is pride in home ownership. When a person lives in a place for a long time, he takes more interest in the community and it matters, which closely ties him to community and place roots that last longer than renters.
Control of Your Property
Home ownership offers many benefits, the one is that by owning a home, you’ve full control over your property. So, you can decorate or renovate your home according to your choice because you’re not bound by the landlords or other restrictions as in apartment living. So, you can change the landscape of your house, create a patio, add extension and much more.
In home ownership, the interest and property tax portion of your mortgage payment is tax deduction. So, as a home owner, you can save money in the long term as there are possible tax deductions related to income generating properties.
Builds Good Credit
Being a homeowner, you can build good credit scores by paying monthly bond repayments on time. So, not only you can enjoy large investment on your name but also improve your credit profile as well.
Privacy is of great concern. Home ownership allows you to enjoy privacy as the property is yours.
Cons Of Home Ownership
Long term Financial Commitment
Home ownership is a long term financial commitment because being as a homeowner, you’ve to take responsibilities of ownership that cost heavily, including regular house maintenance, taxes, and bond repayments. In case of having poor credit history, then it is going to cost heavily.
The Risk of having to Sell at the Wrong Time
In home ownership, there is always a risk of selling at the wrong time. Due to some economic factors like recession or high interest rate or significant decline in population, making location less desireable, you can’t make profit through resale.
Coming up with the Down Payment
Home ownership comes with down payment, closing costs and moving expenses.
Home ownership does not offer flexibility because it ties home owner closely with a community and he just can’t pack up and move to the other place. A home owner is likely to sell his house before buying a new one. So, a homeowner has less mobility that a tenant can enjoy.
By owning a home, you can’t enjoy amenities such as parking area, playground, gym etc that an apartment living offers.
So, owning a home is big responsibility, these pros and cons will help you come to a final conclusion.