Ownership Pros and Cons

Pros and Cons of Ownership
I get this question almost every day. When one is faced with a lengthy mortgage, you tend to feel like a renter since you’re always paying to stay in the home. A good way to sort through the decision is by considering the ways home ownership can affect your life.

Pros

  • Build equity — your wealth will increase as you gain more home equity
  • Gain tax advantages — mortgage interest is tax deductible as per IRS code 
  • Stabilize your payments — monthly payments are relatively steady if your loan has a fixed interest rate, while your landlord can increase the rent
  • Have a secure place for your family to live — a home provides a permanent place where your family can live and grow, and you can decorate or expand a house the way you like to create your dream home
  • Gain a sense of community — homeowners often are more involved in the well-being of their communities; many homeowners work together for better schools and less crime

Cons

  • Maintenance costs — it takes work and money to keep a home in good condition
  • Ties up your cash — selling the house may not be possible during the first few years of ownership; moving is more difficult and complicated and you may not have as much flexibility in choosing a new job location
  • Can fluctuate in value — there is no guarantee that your home will increase in value; it could decrease in value
  • Obligates your finances — when you buy a home, you are obligated to a set monthly paymentImage
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