Chances are you’ve heard many times that owning a home is the American dream. But is it really worth it? As with anything, there are advantages and disadvantages, and buying a house is no different.
If you’re contemplating homeownership, take a look at this list of the pros and cons of buying a house.
The Pros and Cons of Homeownership
If you’re thinking about becoming a first time homebuyer, consider these advantages first:
Increased Market Value
If you buy in a good market, the home you purchase could become more valuable over time. This is an advantage because if you sell it, you’ll get more for it than what you initially paid.
Unlike apartments, houses provide more privacy. Your neighbors aren’t as close, so you don’t have to worry about being disturbed by others.
Steady Monthly Mortgage
If you have a fixed-rate mortgage, it helps you to determine how much your living expenses will be long term. On the other hand, if you live in a rental, the property manager can increase the rent at any time.
Building Home Equity
When you’re considering the pros and cons of buying a house, add home equity into the equation. Equity is a huge perk that you won’t get as a renter.
Take a look at this great guide to learn more about a home equity line of credit.
Costly Maintenance Repairs
While buying a home might be cheaper monthly than renting, the cost of repairs greatly impacts the overall expenses. When you’re renting, you don’t have to worry about repair costs.
As a first time home buyer, you can expect to pay a lot upfront. You’ll need thousands of dollars for a down payment and other fees.
Another huge factor to consider when buying a house is the commitment. If you are someone who likes to travel or you’re not ready to settle in one place, homeownership might not be for you.
You can’t pick up and move as a homeowner like you can as a renter.
Property taxes will definitely increase your overall cost. Even if you have an affordable mortgage premium, you have to factor in the added cost of property taxes.
Expensive Mortgage Payments
Depending on how much you put down upfront, your mortgage premium could cost more than rental payments. There are many factors that determine the price you’ll pay monthly for your mortgage. If you have an expensive home or you didn’t put a lot down, your mortgage premiums will far exceed rent.
The Pros and Cons of Buying a House: Choose Wisely
Weighing the pros and cons of buying a house makes the decision challenging. But whatever option you choose should be decided based on what’s best for you and your family. If homeownership doesn’t seem like a good fit, there’s nothing wrong with continuing to rent.
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