Four Pros (and Cons) of Homeownership
For many people, purchasing a home can the largest financial decision they will make in their life, as well as one of the most daunting. NAFSA’s Financial Literacy Program has a digital module called Considering Home Ownership that can help you discover your personal and financial readiness for home ownership. This article will explore the pros and cons of home ownership to assist you in making an informed financial decision.
Pro – The value of a home has the potential to go up over time increasing the original investment and making the homeowner money in the long run.
Con – While the value of a home has the potential to go up, the value could also decline over time. Unfortunately, many of the factors a decline in value are outside of your control as a homeowner.
Pro – When you’re making a payment on a house that you purchased, your money is going towards an asset you own, as opposed to renting. When you rent, you pay a certain amount each month, usually without any hope of future ownership.
Con – Many homes require a down payment. A down payment is an up-front payment when you purchase an item on credit. The owner must pay for all costs related to the home they purchase.
Pro – While paying taxes, homeowners have the ability to deduct mortgage interest and property taxes.
Con – Property taxes are a reality for all homeowners, and can be a large financial burden if you’re not prepared for them.
Pro – Homeowners have the ability to decorate, renovate, or customize their home as they see fit.
Con – All expenses associated with those customizations, as well as improvements and maintenance fall to the homeowner.
Weighing the pros and cons is an important step when deciding your personal readiness to purchase a home. At the end of the day, there are many positives and negatives on both sides. It’s up to you to decide if the pros outweigh the cons. If you would like to explore more financial modules to help you plan for your financial future, check out NAFSA’s Financial Literacy Program here: https://nafsa.everfi-next.net/