Should I own a home? We are fortunate because the dream of someday owning a home is a reality in our country. Home ownership is a solid symbol of our free enterprise system and is one of our greatest rights as U.S. citizens. It offers some income tax advantages and is often viewed as a sign of stability and commitment. From youth on, we subtly experience the security, comfort and prestige that go along with owning a home. It is truly the American dream.
Everyone Has A Different Idea
Obviously, a home is many different things to many different people. It is often an extension of your personality and a representation of your individuality. It is a place where you can express your tastes, interests and other personal characteristics. It can also be an indication of success and pride. It is referred to as a “castle”, a place for privacy or entertainment. It may not be the biggest or the best home, but it is always “Home Sweet Home.”
Is It For Everyone?
Even with all of the positive images and impressions of a home, the fact is, home ownership may not be for everyone. If this is your first home, there are many points of view to consider before taking the plunge into home ownership. Besides all of the emotional considerations, there are many aspects of responsibility to evaluate before turning your dream into a reality. On the other hand, for current homeowners circumstances change. Growing older, retiring from the workforce, changes in family units or health and many more circumstances will cause us to seek alternatives, but this too requires careful evaluation of the situation.
Here is a practical view of the advantages and disadvantages of home ownership. Consider each one carefully, and perhaps even make up your own list of pros and cons. This unbiased look at owning a home is helpful. Real estate consumers have their own views of advantage and disadvantage based on factors contained in their own unique situations.
Advantages Of Homeownership
• Community Standing (commitment and involvement; a sense of belonging)
• Financial Investment (equity through loan reduction)
• Tax Incentives (deduction of mortgage interest)
• Family Security (a place to call “home”)
• Psychological (prestige and status)
Disadvantages Of Homeownership
• Commitment (to save for the down payment)
• Conviction (to borrow and repay the mortgage)
• Maintenance (to keep your investment clean and protected)
• Repairs and improvements (to promote safety and maintain value)
• Extra Time (less time to devote to other things because home ownership competes for your time)
When considering these thoughts, ask yourself this question: Is the price you pay in sacrifice and hard work worth the financial benefits and sense of accomplishment that a home may offer you and your family?
Your Home Is Not An Investment
Buying real estate has generally been considered to be a sound investment. It is unknown if the events of the past several years will have a long-term effect. One thing is certain, there are not any guarantees with home ownership being a good investment in the short-term future. In the past, when compared to other forms of investing, real estate often outperformed them all. It was because real estate continued to appreciate in value at a rate that kept up with inflation.
It has always been true that not every home will increase in value. Part of that depended on how well you purchase it. Today, my recommendation is not to buy depending on your home going up in value. Buy it to fit your plans and dreams and as a place to live and be comfortable. The knowledge and information you receive before you buy and the care and types of improvements you make while you own will considerably increase your chances of making it a great home.
There Is No Denying …
“Whether you rent or whether you buy, you pay for the home you occupy.” You have the choice. Will you pay for your own mortgage or your landlords?
The realities of home ownership should not be overlooked. It takes an honest evaluation of your character, lifestyle and goals to determine if you are a appropriate candidate for home ownership. Then, thoroughly weigh the benefits against the risks and your conclusion should be an accurate one.
It all goes back to the dream. If you have made the commitment that home ownership is a part of your American dream, we want you to be successful during the real estate process and offer you our insights and experience with the many decisions you will face. Learn more..
Ask if you have a question. We will answer you.