Home ownership may bring you much delight, but with ownership comes responsibility. This decision should be carefully made depending on your current financial situation, future plans, and lifestyle choices. Here are some positive and potentially negative aspects to consider:
Mortgage – This may or may not bring you financial stress. Today’s interest rates are at an all-time low, and it is a buyer’s market. Purchase wisely to avoid financial stress.
Additional costs – In addition to the mortgage payment, you must factor in taxes, insurance, maintenance, home improvement and possible association fees, just to name a few.
Emotional Security – For many the sanctuary of their own home provides a place where their families will experience many important moments and make lasting memories. This feeling can be far more significant and outweigh the burden of a mortgage.
Equity – Our recent housing situation has made the reliability of building equity and long-term financial security in our homes a little more difficult. Although, with proper guidance and time invested — a home can still be a solid investment. You should, however, plan on staying in your home at least four years to cover buying and selling costs.
Cash Reserve – Having an adequate reserve will enable you to endure a job loss, long-term illness or any other financial setback.
Time Invested – You are entirely responsible for repairs and maintenance of your new home. Whether you choose to self-maintain or hire out contractors, you still need to factor in the time spent doing these tasks.
Inflexibility – Once you’re in your new home reselling quickly is not a wise financial option, as you may not recoup the buying and selling cost.
Flexibility – You are now the owner of your home and have complete authority to renovate or decorate as you see fit.
Community – Being part of a neighborhood, putting down roots and forming a sense of community for you and your family may be the greatest joy of homeownership.
The advantage of owning a home may be different for everyone, so be sure to consider your personal situation and long-term goals before making your decision.
Answers from AZ