What are the advantages/disadvantages of home ownership?

Question

Can you tell me wether you prefer owning your home? Or do you miss renting? And is it a financial burden once you own a home? I will take any information that you are willing to give. Thanks...

Answer 1

Renting gives you flexibility but little control, buying a home gives you the feeling of control and an apparent tax break on the mortgage payments.

In practise, a mortgage exposes you to the insecurities of the job market - the job goes away, you cant make the payments, they repo the home and you have lost every penny you put in. That wonderful tax breaks doesn't look so good when you find that you need a lawnmower, to paint the house, clean the gutters, repair and replace various bits. Yes, you control the color of the front door - but YOU had to paint it. Termite and pest control, property taxes, mandatory insurance all add up. That house insurance probably has a several thousand dollar deductible that will come out of your pocket if there is hail damage or water damage.

I owned various houses between 1972 and 2006; now I rent. I will only buy for cash from now on.

I live in Nicaragua and a house can be as little as $5,000. Mortgages are for the birds. Get down here and retire on $800 a month.

Answer 2

There is no question that owning a home is always preferable to renting. The US Government rewards people for owning their own home and for investing in real estate by giving tax deductions, depreciation, expense deductions and more. As a renter, you don't get these rewards. The biggest reason to be an owner is wealth accumulation. When you own a property it generally appreciates in value. Over time, you can borrow this equity and use it to invest in other property. True wealth is created this way. Finally, there is security in real estate. Even if your property burns to the ground, there is likely still value in the land! The only advantage I can see to renting is for the landlord!

Answer 3

Owning a house is a very good investment. Instead of paying rent, you pay to own your very own house. The equity builds up, you get to decorate it the way you want it, and there are many different kinds of loans that can fit you and your budget. I don't see any downside to owning your own house. Some people believe that property taxes, HOA's, PMI's and house insurance are all burdens. But, I believe they are worth it. PMI's can also be eliminated. HOA's are not offered in every places. Property tax depends on where you live. House insurance is a liife saver.

Answer 4

Read "Rich Dad Poor Dad". Basically he writes what I learned in my Real Estate Investment courses but in a simple easily accessible manner. It could be easily read in an evening.

Keep in mind that a home is a liability not an asset. This goes against a great deal of popular "wisdom" that one may hear, but it is very important to understand.

Answer 5

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