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There is a plethora of reasons to want to own your own home. It’s a great feeling to have a place to call your own and where you can raise a family. It’s nice to be able to do what you want without fear of a landlord. However, there are also unpleasant factors to consider that will help determine whether home ownership is right for you.
A Place All Your Own
The greatest thing about owning your own place is just that; you own it. You have the freedom to do anything you want with it. You can paint, decorate, or remodel however you see fit. The luxury of having the flexibility to create a comfortable environment in which to relax and feel at home should not be underestimated. After all, a man’s home is his castle.
The Money Factor
With respect to the money situation when owning a home, there are good aspects and not so good aspects. First, the good. Unlike renting, the money you pay toward your mortgage is not entirely lost. Though you lose the interest portion of your payment, you gradually get that principal back as you accumulate equity in your home. Additionally, you are able to write off the interest payment when you file your taxes.
Unfortunately, home ownership is very expensive. Payments for maintenance, utilities, insurance, etc. can seem overwhelming. Furthermore, although home prices historically increase in value over time, there is no guarantee that will be the case. As we’ve witnessed recently, home prices across the country have plummeted. That’s why I believe the home in which you live should not be looked at as an investment. If you live in a home long enough, it will likely increase in value, but that should not be your priority.
You’re Responsible for Everything
One aspect of home ownership that catches many individuals by surprise is the fact that they are wholly responsible for every aspect of their home. If you’re not willing to become an expert on plumbing, electricity, carpentry, etc., be prepared to spend a lot of money on those who are. Unlike your renting days, there’s nobody to call to come and save you when your heat goes out, or you have a leaky faucet.
In the end, I think the benefits outweigh the costs and headaches, but have an understanding of the big picture of home ownership before deciding what’s best for you.
