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Myke Thomas

Detailed Look into the Pros & Cons of Buying a House

Friday, January 18, 2019 - Article by: Myke Thomas - Telecommunication - Message

Buying a house is one of the largest decisions that most adults make. While the 2008 housing bubble has made many families question home ownership, there are still many good reasons to buy a home - and some important cons to consider as well. Home sales have been increasing over the last several years. Is this your year to buy a home?

Advantages of Buying a Home

Creating Your Own Space - Many homeowners cite personalizing their space as one of the main reasons they chose to buy a home. From paint and custom hardware to chefs' kitchens designed for entertaining, creating a home that reflects your family's specific needs is part of the joy of home ownership. While custom-built homes may be out of reach for some buyers, purchasing a home and renovating or remodeling it gives homeowners a functional space instead of adapting to a rental property.

Settling Down - "Laying down roots" is another advantage of buying a home. Developing relationships with neighbors can make many families feel a sense of belonging. No more worrying about where to move when a lease is up or packing every few years. Buying a house means joining part of a community.

Beginning Your Own Family - Many couples decide to buy a home as part of starting a family. Larger houses with space for kids and neighborhoods with amenities like playgrounds or community pools are popular for families with children. Something to keep in mind is the school district that you're looking at houses to buy in, you want to make sure the home is in the proper zone/district of the school you want your children to attend.

Disadvantages of Owning a House

Expensive Repairs - When something breaks in your house, it's entirely on you, the homeowner, to repair or replace it. While homeowners insurance may cover drastic incidents, such as a fire or flooding, things like a broken water heater or an air conditioning unit that gives out are your responsibility. Renting a house means that a landlord shoulders the burden of fixing things that break.

Stuck In Your Location - You may get that dream job offer - in another state. If you rent a home, you may be able to end your lease early. However, if you've purchased a home, you're faced with the daunting task of selling your house in order to move. While this can sometimes happen quickly, other times your home may sit on the market. You're stuck paying a mortgage, or you may have to turn down exciting relocation offers because you are tied to a house.

Housing Market Woes - Many people treat their home as an investment and hope that when their 15, 20, or 30-year mortgage investment is paid off, that they'll have equity to reinvest in a new house or to fund retirement. However, homeownership as an investment tool isn't always the best bet. While some variable rate mortgages ended up with homeowners being "upside down" on their loans as housing values dropped, other homeowners don't always come out ahead of the game even in markets where home values are fairly steady. Owning a house ties up a lot of your capital.

Home Ownership Is a Winning Decision

Overall, owning a home versus paying to rent in someone else's makes financial sense for many. Customizing your space, so that your home is a welcoming retreat, putting down roots in a community, and building equity for you and your family all make owning a home a smart decision.

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