Pros & Cons Of Home Ownership!
For most people, owning their own home is something on the list of priorities. As with anything, home ownership comes with its pros and cons. Making the decision to save for a deposit and buy your own home is a big one and it comes with a lot of considerations. Given the huge upfront costs of buying your own home, renting always seems like the easier option.
The downside? Renting is dead money. You’re paying someone else’s mortgage without having any of the freedom of home ownership. The house you rent is never truly yours – but that doesn’t mean everything is peachy when you own a house either! Aside from having to research and choose moving companies to help you go from rented accommodation to a purchased home, there are a lot of things you need to think about before you go ahead and buy a home. We’ve compiled some of the best pros and cons for you so you can make a more informed decision.
- Buying a new house offers a long-term security for you and your family. Homeowners build equity in the home over time, which can be a godsend when it comes to upgrading and renovating the house. With that, comes personal wealth and the ability to sell your home as you see fit.
- Signing your name on a home ownership contract means you can one day rent your home out. This potential income can pay the mortgage for you, which gets you further up the property ladder as you buy a second home.
- You have greater control over your home than if you were renting. You can make changes, paint, decorate and redo the garden as much as you like.
- Owning a house can improve your credit score, which makes you financially favorable in the eyes of the bank. It means you are trustworthy if you choose to make large financial investments.
- Pride. There’s nothing like knowing you own something so grand that you will one day be able to pass to your children as part of your inheritance.
- Privacy is important to everyone and that’s something you get with home ownership. You don’t have to answer to a letting agency or a landlord, meaning you can manage your home how you see fit.
- With home ownership, you are not protected. Renters have the right to help from the government if they lose their job. As a homeowner, you are not seen as someone who would need help should you lose your job.
- Repair costs and maintenance are in your hands when you own your house. If the boiler breaks down, you are the one to replace it instead of a landlord to call.
- Flexibility is not something afforded to you as a homeowner. Selling a house takes far longer than simply ending a tenancy at the contractual finish.
- Insurance as a homeowner is higher than if you were renting. Not only do you need to have insurance to cover your furniture and possessions, but you need an entirely separate insurance for the house itself.