Main Advantages of Buying a Home
The benefits of going in for a mortgage can be numerous but experts have always included the following among the top advantages of self-ownership of a home as opposed to renting:
Pride of Home Ownership
Elizabeth Weintraub, a seasoned full-time broker-associate at Lyon Real Estate’s stated in her article, “Before you Buy a Home – Look at Eight Reasons to Buy a Home” that pride of ownership is the number one reason why people would love to own a home. Living in one’s own house gives one the freedom to choose preferred colours for decorations and for painting. One is at liberty to keep any desired number and types of pets. Pride of ownership is one good reason to go in for a mortgage loan.
Mortgage Equity Loans and Refinancing
Buying a house may have its own financial burden but at the same time it offers opportunities for other mortgage refinancing options. As pointed out by risk analyst and columnist J. Sigh in his Loan Page article, every monthly mortgage payment is a contribution that increases the house owner’s equity in the home. If one considers the fact that in the future, the house could be sold for a higher amount than it was bought, then mortgage payment may after all, be a long-term investment. The opportunity for a home equity loan and other mortgage refinancing options is an additional reasons why it is good to buy a home.
Security of Stay and Rent-Free Retirement
Unlike one who rents, the home owner does not worry about regular movements to new places. No worries of having to pack out at short notice because a landlord wants to sell the home. In addition, Rich Bendall, a real estate expert, wrote in “Benefits of Buying a Home” published in Ezine Articles on September 9, 2008, that once one is able to finish paying for a home, one is assured of the luxury of a rent-free retirement.
Cashing Out through Tax Deductions
Most of the interest that forms part of mortgage payments are tax deductible which benefits of the one responsible for the mortgage payment.
Disadvantages of Buying a Home
Though many are those who wish to live in their own houses, owning a home goes with some challenges. The following are some of the disadvantages associated with buying a home:
Property Taxes, Insurance and Maintenance
Once a house is purchased, one has the burden of paying property tax which is usually included in the monthly mortgage payment. Insurance is required along with a home loan and has to be paid out of pocket. And once you own a home, dealing with the lawn and other forms of maintenance becomes the house owner’s responsibility.
Risk of Declining Mortgage Value
Purchasing a house is a financial investment. One may therefore loose money on a mortgage investment when the value of homes decline. Buying a home involves some opportunity cost. If monies could be invested in other ventures that may yield more profits than buying a home, then it may not be worthwhile to invest in a mortgage.
