By Evan Vitale
This is the second in a two-part series on renting or buying your own home.
Just like renting a home, buying your own house has some advantages and disadvantages as well.
Advantages of buying a house:
- The biggest advantage is that your monthly payment builds equity (ownership). The longer you own your house, the more equity you build. Equity is like cash. You can borrow against it, refinance your home in order to earn a better interest rate. It’s also a return on your original purchase should you decide to sell your home someday.
- Another big advantage are the tax deductions you can receive.
- Should you ever decide to change the interior or exterior of your home, there’s no need to check in with the landlord. You’re the owner!
- Owning your house offers pride. People love to say they own their house.
Disadvantage of buying a house:
- It’s an investment. The housing market has seen trends go up and down. Where will the trend be when you decide to sell your house? Will you be getting a good return on your investment?
- You may not like the neighborhood. If you’re single and the neighborhood is family-oriented, you may feel like you don’t fit in with couples and children. It’s an adjustment you’ll have to handle.
- Maintenance and repair problems are your problems. You won’t be able to call the landlord when the furnace isn’t working or the roof starts leaking. Make sure you are able to handle unexpected homeowner expenses.
Which one is right for you? It all depends on your income, career plans, etc. Talk to your family. Ask your banker, talk to a realtor friend, do some research and collect information. Don’t rush into any long-term situations without feeling 100% secure with your decision.