“Exciting Times – Ready to Make Your Best Move Yet?”
In exciting times for homeowners when their home values are on the rise, could your best move yet be home ownership?
Take it from a guy who has done both, there are compelling reasons to purchase a home rather than pay rent! But, home ownership does have its share of responsibilities that need to be considered. Let’s begin by discussing some of the responsibilities that come with owning a home. A big one is maintenance. Maintaining a home is costly and time-consuming, with unexpected repairs always popping up. As a renter, I remember the convenience of calling the landlord for repair of the HVAC system on several occasions. No surprise, homeowners are responsible for all their own maintenance. This includes routine upkeep to larger issues that may arise—think roof replacement, structural repairs, foundation issues, etc.
With acquisition of a mortgage, there are now property taxes and insurance costs. These are typically added into your mortgage payment, making your actual payment on the principal less and your interest payments more over time. Additionally, real estate market fluctuations can be unpredictable, posing risks for those financially tied to a property. The housing market crash of 2008 put many people underwater with their mortgages, meaning they owed more on the home than the current market value. Not a place you want to be! But, let’s not leave it there…
Home ownership is a path to building wealth and should be viewed as a long-term investment. With each payment on the principle, equity builds. Equity is money that you are really paying yourself because, when the home is sold, whatever equity you have built belongs to you. Property tends to appreciate over time, making your equity, or the share of the home you own, worth more. And, with the final payment on your home, it is really yours! Finances are freed up to allow for investments, charitable donations, children’s college funds, or whatever you decide. Speaking from experience, this is a wonderful place to be!
Ultimately, the choice between renting and home ownership depends on individual priorities and circumstances. As a prospective buyer, you should carefully consider all these factors. But, I won’t be surprised if you arrive at the same conclusion that I and so many others have- home ownership is a better way to go!
Just remember, before you close on that perfect home, make sure that you have a home inspection performed by a certified professional inspector. A good home inspection can direct you toward making the right choice and potentially save you thousands of dollars in repairs down the road. That is because a quality home inspection report will clearly document the home’s condition and any needed repairs. These can be addressed by the seller prior to closing or negotiated as a reduced sale price for the home. Now, that sounds like a smart investment to me! Well, I hope this discussion has at least got you thinking. Wishing you the best in your home purchase adventure!
― Your Friends at Higher Rock Inspections ―
