The Pros and Cons of Owning a Home:
For more than six decades, the American dream has always included owning a home. With the purchase of a home, comes a sense of pride and accomplishment. And no wonder, it takes hard work and dedication to reach such a goal.
Of course, there are positives and negatives to any situation including your decision to take the step in owning your own home. Purchasing a home is not for everyone. As your real estate coach, I want to educate you to on the pros and cons of owning a home so you can make the best decision for you and your family.
One of the great joys of renting is that the owner or property manager takes care of all of the maintenance. They obviously want to keep the property in good working order, for future tenants so if your toilet breaks or your air conditioner goes out the management company or the owner will either take care of it or reduce the amount of the fix from your rent.
As a homeowner, it is all on you. If your toilet clogs or your air conditioner goes kaput from being run 10 months a year in Florida then you are responsible. For some, this is a hassle they just don’t want. Others are not happy about having to pay the additional cost but understand this is a fact of life about home ownership and know the cost will be outweighed by the increase in home value.
As a renter, you do not have the option to receive a tax credit for the rent or the improvements you put into the property.
As a homeowner, you have the ability to take tax credits for the work that you do in your home. So, after having lived in the home for two years you can receive credit for a mortgage payment, interest, and improvements made to the home. This can include up to a $250,000 credit for those filing single status and up to $500,000 for married couples. **Make sure to verify your eligibility and credit status with your CPA***
Equity Equity Equity.
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” -- Andrew Carnegie, billionaire industrialist
One of the true paths to independent wealth is through the purchase of real estate. As a renter, you do not have the option to build equity in your investment. This means every check you send to the owner or property Management Company does not provide you any sort of return on your investment.
As a homeowner; however, every payment provides your equity in the property. This means every time you make the mortgage the price of the home is lowered while the value either remains the same or depending on the market increases in value. The difference between the appraised value of the home and what you owe is your proposed equity in the home. This equity is an addition to your net worth.
While homeownership is not a goal for everyone, many people have the opportunity to purchase a home and don’t even know it. There are many programs available that allow buyers to purchase a home for little or no money down. Also, if you do not have perfect credit, there are a number of programs to help you reach your American Dream.
The market has shifted in favor of buyers; so if you have ever wondered if you could afford a home contact one of our real estate advisors to discover your options.
Contact us today at 239.692.9449