The Other Side of the Coin: Disadvantages to Buying a Home
Hello, everyone! Today we’re discussing the disadvantages of homeownership and why owning your own home can be a challenge. I’m sure you’ve heard that owning your own home is a good thing, but is it right for you? Here are some of the challenges you might run up against. For more information, click on the source links provided after each segment:
Although there are creative financing options available allowing you to buy a home with no money down, the standard down-payment for a home is 20% which, depending upon the sale price of the home, can be a substantial lump sum to make available. You will be responsible for repairs and maintenance to your home’s exterior (windows, roofing, “landscaping” including mowing) and interior (plumbing, painting, carpeting, etc.) And you will also assume the added expense of basic household items such as a refrigerator, range, washer/dryer, hot water heater, lawn mower and lawn implements, tools, etc.Â
http://www.gerberlife.com/gl/view/newsletter/july06/article1.jsp
There are no guarantees. Even if you work hard at maintaining your home, property values can drop, depending on the neighborhood in which you live. This is why it’s important to choose a house and neighborhood that have strengthening value in the real estate market. Being a homeowner is usually more costly than renting. Mortgage payments are generally higher than rent, and include the added costs of home repairs and maintenance. As an owner, you must pay for any unexpected costs such as a new roof or heating system. This is why a family budget and a savings strategy are important. If you run into financial trouble from illness or lose your job and fail to keep up with your mortgage payments, the mortgage lender could call the loan, which means payment in full or foreclose on the mortgage. This could result in the loss of your home as well as the equity you’ve built. A renter, on the other hand, can downsize to a cheaper apartment to cut expenses. Owning a home usually makes moving difficult and complicated. After you purchase a home, you may not have as much flexibility in choosing a new location to live or work.
http://www.militarymoney.com/money/1066306390
Buying a home may cause a substantial strain on your finances. For the first several years, you should expect to pay more for housing as a homebuyer than as a renter. Property taxes, homeowner’s insurance, utilities, and upkeep added to your mortgage payment can be more than you would pay for rent.
http://www.first-time-home-buyer-center.net/advantages_disadvantages.htm
I hope today’s blog entry has helped you to make an educated decision on’whether or not owning a home is right for you and your situation. While as a Realtor, I obviously encourage you to buy a home, I certainly don’t want you to commit to something outside of your means or something you’ll regret later.
We welcome your input, opinions, ideas and suggestions! If you have something to share with us on this topic, please post your comments on this discussion.
Return frequently to see what is new,
Evelyn Bruder,
REALTOR, CRS, GRI, ABR, E-PROÂ
http://www.homesforsaleinlascruces.com
E-mail:evelyn@homeslascruces.com
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Steinborn GMAC Real Estate 522-3698
