Home Ownership is the American dream.

Home Ownership can also be the American nightmare.

Not everyone is suited to own a home.

Before you make a purchase you need to find out if home ownership is for you.

There are many advantages to home ownership.

I referenced an article that compares buying vs. renting.

"A home is one of the most expensive purchases most of us will ever make during our lifetime. Whether you decide to rent or buy, either choice comes with its own rewards and risks."

Source Yahoo Real Estate – Buying vs. Renting

These are a few advantages included:

 1. Tax Write Off for Home Ownership

Not all taxpayers qualify to use Schedule A.  The standard deduction may be more than the items on Schedule A. 

Renting may be a better option to home ownership if you are unable to use the tax write offs.

2. Upgrade your home as you see fit with home ownership.

When upgrading keep in mind that all improvements do not add value to your home.

Before you start upgrading you must weight all the options of financing your upgrades.  You must also consider how long you plan to stay in your home before making upgrades.

3. Building equity with home ownership

As your homes value increases it builds your equity.  The appreciation of your homes value will depend on the real estate market in your area.  In some areas the value of homes has been decreasing.   You can build equity by paying extra on your principle.  By decreasing the amount owed.

Renters have no stake in the property.

4. Control of loan payment options with home ownership.

You have many options with a mortgage.  Which include your terms and interest rate.  You can also choose how you will pay each month.  Single payment or bi-weekly depending on your pay cycle.

Home ownership has disadvantages as well.

Home ownership includes all property repairs (roof, gutter, furnace, hot water heater, windows, doors and etc).

Home ownership includes the yard (grass, trees, shrubs) up keep.

Home ownership includes all appliances. 

Home ownership includes leaf and snow removal.

Before you go out shopping for a home.

Consider what your utilites, property maintenance, taxes, and insurance.

Your mortgage advisor does not consider your utilites and property maintence (yard, repairs, appliances and general maintenance) when calculating your mortgage payment.

Not only do you need to save for your down payment with home ownership.

You need to save for unforseen repairs and maintenance when buying a home.

Buying a home warranty is a good idea with home ownership.

The warranty can save you with costly repairs.

Renters normally do not have lawn equipment or tools.

Home ownership means buying lawn equipment or tools for everyday repairs.

These are just a few things to keep in mind when you are considering home ownership.

Are you ready for home ownership???

Your Financial Coach,

Renee Lawson

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