Why Buy a Home?

There are cons and pros to everything, in this case: 

Ownership Advantages

• You can build home equity and wealth
• Sizable tax deductions possible
• Your space, your rules (pets welcome)
• Ability to remodel, expand, tear down
• Pride of ownership (social status, accomplishment)
• Potentially better for children, family structure
• Mortgage payments can improve credit score quickly
• Ability to borrow against home (HELOC or cash-out refi)
• No more monthly payments once mortgage paid off
• Fixed payments (if you choose a fixed mortgage)
• Mortgages are the cheapest loans available
• No landlord
• Can exclude capital gains when you sell (up to $250k per owner $500k for 2 owners)
• Inflation hedge
• Can rent out to others
• Retirement nest egg
• It’s the American Dream!

Ownership Disadvantages

• Home prices may lose value or buyer overpay for the property
• Obtaining a mortgage (and finding a home) is a hassle
• Not everyone qualifies for a mortgage
• You must pay taxes and homeowners insurance
• Total housing payment can be more expensive
• Mortgage payment can rise (if an A.R.M.)
• Down payment necessary
• Maintenance costs can be excessive
• Pricey HOA dues (if applicable)
• You’re “stuck” in a home (long-term commitment)
• Increased liability and responsibility
• Transactional costs of buying and selling
• Ownership can be stressful!
• Taxes and insurance generally rise
• Your home can be damaged or destroyed (and not fully insured)
• Can be foreclosed upon.