Home ownership is a big step for anyone. Some do not know if it is better to buy a home or to rent one. Everyone’s situation is different; therefore everyone must decide what will be best for them. Here are some pros and cons of homeownership to help you make that choice.
The first and most obvious pro to home ownership is that you have the freedom to do what you want with the home. When you rent you are limited on what you can do. Some landlords will let you do more than other, but they all put a limit on what you can do. When you own your own home you do not have to worry about that. You can do anything you want to the home to make it truly yours.
The first con of being a home owner is that it is a long term commitment. When you rent you sign a contract stating you will live in the space for a certain amount of time. When you own a home you are there until you move, which for some people is not exactly possible because much of their money is tied up in their house.
The next pro is that when you own your own home you have more privacy. You do not have a landlord stopping by to check on things or do things on the property. When you rent if you are in an apartment you will have neighbors all around you. If you rent a house your neighbors may not be as close but if you do not have a fence for privacy and your landlord will not allow you to put on in, you could lose out on some of that privacy.
The next con to owning your own home is that you are responsible for maintenance. If something happens you do not have the ability to call your landlord and have them take care of it for you. This also means that not only do you have to fix it yourself, but you will also have to pay for the maintenance too.
Another pro to owning your own home is the equity that you get out of it. This equity can be used for various things. When you rent you have no option of getting any equity out of where you live, this is only something you can get if you purchase a home.
Buying a home can be a risk, which is the next con. If the market goes bad after you purchase your home you could find that you owe more than your home is now worth. You may also get one interest rate, just to have rates drop right after that, and then not qualify for refinancing.
One last pro is that when you own your own home you can refinance if you qualify. This is nice because then your monthly payment could be lowered. This does not happen when you are renting. No landlord will let you negotiate for a lower rent. The only thing that can happen when you rent is that the cost goes up.
Owning a home is a big deal. Since everyone’s situation is different it is up to them to make the best decision for them. Knowing the pros and cons of owning a home will help with that decision. Do not rush into a decision; take the time to think about what you want and what will be the best option for you.