PROs/Advantages of buying a home
- The value of a home typically appreciate over time and if you decide to sell, you can earn a profit off of the sale.
- Being a Homeowner allows you creative control of your property. You can alter the property, including decoration changes, landscaping and renovations, to suit your needs and your style.
- You have the option of buying to rent which enables a Homeowner to generate income from renting out the property. This income can be put towards the home loan.
- This large investment will be under your name and paying your monthly mortgage payment on time increases your credit score.
- If you refinance your mortgage payment, you will be able to withdraw a large amount of money to pay for major purchases.
- Housing Payments Will Stay Stable.
- Greater privacy.
CONs/Disadvantages of buying a home
- You have to pay for your own maintenance. You must spend time and money keeping your home in good repair.
- Your house is an illiquid asset. If you would need to sell because of a job relocation or change in your circumstances, it may take some time.
- You need to pay property taxes, which can go up, making your home less affordable.
- Your home could lose value. As many people have learned the hard way, there’s no guarantee that your home will increase in value over time.
- Buying a home needs cash. You need to use up your savings for a down payment and closing costs and for other expenses of homeownership.
- Homeowners’ insurance is required if you have a mortgage. Your lender requires you to insure your property, and typically you have to pay those insurance premiums along with your mortgage payment.
- Homeownership is a long-term financial commitment.
- Owning a home ties you to your community, making itharder to suddenly pick up and leave a location.
- Mortgage payments are usually fixed, but they’re generally higher than rent payments.