Owning a home, pros and cons

For the majority of people, owning a house is the self-actualization of their American dream. For others, it can be their worst nightmare. Buying a house/real estate, is one of the major financial decisions a person will make in their entire life. Therefore, it is important to carefully think about their decision before they decide to buy a home. The pros and cons of the matter should be considered:

When a person is considering buying a home, there are many factors that they have to consider. Do they really need a house right now? Will their income grow with time or not? Will that purchase be beneficial in the long-term? Do they have any money saved? Are they even ready for that responsibility? Buying a house can be one of the biggest financial moves a person can take. The information given below will help a person examine the pro and cons of having a house based on their personal desires, plans for the future and current financial position.


Considerations about owning your own home

Remember, a home is not, in general, a good short-term investment. Consider buying a home if you think you can live in it for a few years or more.

Before buying, it is important that you analyze what the effect of this great purchase will be on your financial situation and lifestyle. These are some points to keep in mind before making a decision.


  • You may be able to deduct the annual mortgage interest and property taxes from your tax return.
  • Over time, you will liquidate a greater amount of capital.
  • You may be able to apply for a loan on the value of your home to make improvements at home or consolidate debts with a loan on the net value of the home.
  • You risk perceiving a profit from the sale of your home if the value increases significantly.
  • You may be able to exclude the proceeds from the sale of the home from your taxable income if you meet certain requirements of the IRS. An accountant specialized in tax matters can advise you.


  • Unless the value of the home increases rapidly during the first few years of your mortgage, you may lose money if you sell it too soon.
  • You will pay more property taxes if you increase the value of your home.
  • You will lose money if you sell your home at a time when your value is low. Before buying, be sure to consider factors such as schools and similar housing in the area, as well as the real estate market. In this way, you can predict if the value of a potential home could be depreciated.
  • The costs of buying your home may increase if you include the real estate agent’s commission, points, loan preparation and other closing costs.
  • Your costs increase immediately after the closing of your mortgage. Make sure you have a financial plan that includes your moving costs, renovations and the purchase of new furniture. In these expenses, most homebuyers incur as soon as the mortgage process is completed.
  • You will be responsible for home improvements and home maintenance, such as repairing or replacing large appliances, air conditioning and heating, and roofing, as well as lawn care.
  • If you have a large apartment with an affordable rent, it can be difficult to become a homeowner with similar costs. The purchase of the apartment also implies the impossibility of collecting all the belongings and easily leaving before a change of employment or another circumstance of life.

Remember that you need to be willing to analyze these advantages and disadvantages, and work to reach an informed decision. Still cannot decide? In that case, perhaps the best advice is to wait a bit before making a purchase decision as opposed to running away looking for that option that you might regret later.

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