| There are times when it is better for a person to rent, | | | | not the landlord. You can then use this equity to plan |
| but most often home ownership has many more | | | | for future goals like your child's education or your |
| benefits and advantages. | | | | retirement. |
| About 10 year ago a had a retired aunt and uncle who | | | | It is Yours! |
| rented a condo in Las Vegas. Uncle Jim (not his real | | | | When you own a home you are in control. You the |
| name, but that's what I'll call him) was a retired minister. | | | | freedom to decorate it and landscape it any way you |
| Throughout his career he and his wife lived in | | | | wish. You can have a pet or two. No one can pop in |
| parsonages, which are homes furnished by the | | | | and inspect your home and threaten to evict you. |
| congregation while they ministered there. | | | | Even young people, like college students out on their |
| He and his wife told me that the biggest mistake they | | | | own, can often benefit from home ownership. It puts |
| ever made was not to invest in buying a home. In their | | | | them ahead of other young people their age financially |
| retirement years, when their other retired friends were | | | | by helping with their credit and giving them what is |
| living in homes that were almost paid off and had | | | | often an excellent investment. Often a college student |
| appreciated greatly, Uncle Jim and his wife were using | | | | buying a home will rent the rooms out, and his or her |
| a huge portion of their limited retirment money to make | | | | roommates end up making the payments for the |
| expensive condo rent payments. They strongly | | | | house. When the student is ready to move on, her or |
| cautioned me not to make the same mistake they had. | | | | she can sell the home (hopefully making a profit) or |
| Recent studies are showing that there are many | | | | keep it as an investment and continue to rent it. |
| benefits for both the owners and the community for | | | | Buying a home is an important decision. It is often the |
| owning your own home, including increased education | | | | largest purchase a person makes in his or her life. |
| for children, lower teen-age pregnancy rate and a | | | | Home ownership also comes with some increased |
| higher lifetime annual income for children. Besides | | | | responsibilities, and isn't for everyone. There are some |
| these, listed below are some of the primary | | | | disadvantages to homeownership that you should take |
| advantages for owning your own house. | | | | into account. |
| More Stable Housing Costs | | | | Increased Expenses |
| Rent payments can be unpredictable and typically rise | | | | Your monthly expenses may increase, depending on |
| each year, but most mortgage payments remain | | | | your situation. Even if the monthly payments are the |
| unchanged for the entire loan period. If the taxes go up, | | | | same, home owners still have to pay property taxes, |
| the increase is usually gradual. This stable housing cost | | | | all the utilities, and all the maintenance and upkeep |
| especially important in times of inflation, when renters | | | | costs for the home. Often you need to supply |
| lose money and owners make money. | | | | appliances that were furnished with a rental. |
| Tax Savings | | | | Decreased Freedom of Mobility |
| Homeonwers can be eligible for signifigant tax savings | | | | Homeowners can't move as easily as a renter who |
| because you can deduct mortgage interest and | | | | just has to give notice to the landlord. Selling a house |
| property taxes from your federal income tax, as well | | | | can be a complex and time consuming process. |
| as many states' income taxes. This can be a | | | | Risk of Depreciation |
| considerable amount of money at first, because the | | | | In some areas with overinflated prices, there may be a |
| first few years of mortgage payments is made up | | | | risk that the house will depreciate instead of increase |
| mostly of interest and taxes. | | | | in value, if the prices go down. If you then sell the |
| If you need to refinance to consolidate other debts (an | | | | house, you may not get enough money from the |
| opportunity you don't have if you are renting) the | | | | home to pay back your mortgage, and you will still |
| interest on this is also tax deductable. | | | | owe the mortgage company money. |
| Equity | | | | Possibility of Foreclosure |
| Instead of payments disapearing into someone elses | | | | If for some reason you are unable to make your |
| pocket, home owners are building equity in their own | | | | payments, you risk having the lender forclose on your |
| home. This is often one of a person's biggest | | | | propety. This can result in the loss of your home, any |
| investment assests. Each year that you own the | | | | equity you have earned, and the loss of your good |
| home you pay more toward the principal, which is | | | | credit rating. |
| money you will get back when the home sells. It is like | | | | When considering home ownership, you need to |
| having a schelduled savings account that grows faster | | | | weight the advantages and disadvantages for |
| the longer you have it. If the property appreciates, and | | | | yourself. If you are like most people, you will find that |
| generally it does, it is like money in your pocket. And | | | | homeownership is worth the risks and disadvantages. |
| you are the one who gets to take advanatge of that, | | | | |