I have owned a house for thirteen years. I’ve listed five advantages and disadvantages of owning compared to renting. Owning a house gives the owner a sense of security, as well as accomplishment, it may also be a blessing to the owner one day. Purchasing a house is a great investment, although not for everyone. A financial commitment and extensive planning are two important factors to keep in mind before deciding to purchase a house.
1.It Is Yours
It is your house, you are no longer renting. This is the most important advantage of all.
2. No Landlord
No more landlords. You do not have to deal with a landlord anymore, for any reason. You are the landlord.
3. No Rent Increase
You don’t have to worry about rent increases anymore. Monthly mortgage payments will remain the same each month. Even better, the mortgage paid goes into the equity of the home. Home equity is an emergency line of credit. These funds can be used to make home improvements, pay off high bills or other unexpected expenses.
4. Tax Deductions
The interest paid on a mortgage loan and property taxes are tax deductible.
5. Parking Space
You have your own parking space now, maybe even with a garage or two. You no longer have to deal with finding a parking space close to your front door.
1. Higher Utilities
Utility bills will be higher compared to previous utility bills while living in an apartment or smaller house.
2. Homeowner’s Insurance
A home cannot be purchased without homeowner’s insurance. In most cases this insurance is included in the monthly mortgage payment. It protects the homeowner from losses or damages to the home or personal property and from liability damages to other people or property.
3. Maintaining Lawn and Yard
Most houses come with a decent size yard. You are now responsible for the maintenance of your own lawn and yard.
4. Property Taxes
Property taxes have to be paid on the assessed value of a house. These taxes are paid annually by the property owner to local and state governments, which are determined by the city property appraiser.
5. Unexpected Household Repairs and Maintenance
Always be prepared financially for an unexpected household repair or maintenance.