Owning a house is truly considered as the “American dream.” It is the goal of many people to own a house by a specific time in their lives. On the other hand, buying a house is a big financial decision as well. That is why it is important to consider the pros and cons of owning a house before making the decision of buying it. Owning a house can be great as that house will be considered as your permanent home and not just a temporary place you are renting to live in. At the same time, the benefits of owning a house come with costs and limitations.
There are many pros to owning a house. A house is a good long-term investment. This means that the value of houses increases over time. Even if the house itself isn’t in good shape, the land is still growing in value. A house can be looked upon as an asset. Also, your equity increases as you pay your mortgage. Over the years, the money will build up your equity rather than go toward the interest. One of the best things about owning a house is having your privacy in your property. You can renovate your property to your liking without anyone’s permission and this is something you cannot do if you are renting. Owning a house also increases your stability as you are most likely to stay at your house for a long period of time. It decreases chances of moving and people tend to stay in their own property for many years.
There are also cons of owning a house and this is why not everyone is a homeowner. When closing a deal on a house, it is usually 2-5% of the house’s value and other fees are also involved (property tax, mortgage insurance, home inspection, title insurance, etc.). It can take years to cover those costs. Since you now own a house, you will also need to keep a job in the same area as you are less likely to move for many years. In addition, all maintenance costs are on you and you have to maintain your property yourself. When you are renting, you are not responsible for any maintenance costs. In addition, you will need to pay for things like heat and hot water. This is something that’s usually included in rented places.
Overall, buying a house is an important and big decision. It is something you need to think about before taking next steps.