Homeownership requires a great deal of time and effort, not to mention resources. Many people believe that the alternatives outweigh homeownership. In addition to the lack of personal reliability, many people attempt to buy a home that they cannot really afford.
Homeownership refers to owning one's own home. A home can be considered an apartment, mobile home, or the house and the land it sits on. They can be purchased from a real estate developer, landlord or previous home-owner. Existing condition, location and neighborhood value determine the price.
People depend on other suppliers to provide them with shelter. Renting is often a common way to temporarily acquire a home. It is relatively cheap to rent from month to month. In many cases, it is to the advantage of the customer to rent. Some rewards for renting include:
- Avoiding Closing Costs
- Avoiding interest on mortgages
- No property taxes
- No property insurance
- No maintenance costs
Renting allows for short-term plans and doesn’t constrain the customer to a long deal. However promising the rewards are for renting, owning a home ultimately saves the customer money and builds equity. Renting for long periods of time allows the cost to rise. When customizing the rental space, the customer is limited to the restrictions his or her landlord. In some cases, pets are strictly prohibited.
Owning a home has several major advantages. Primarily, it allows for much more privacy and comfort. The home owner can also call the space their own. Buying a house is rewarding in that:
- The monthly payment is set for 15 to 30 years.
- Over time, the house gains value
- It can be deducted in taxes1
One problem that occurs in the housing industry revolves around greed. Too often, people become greedy and attempt to buy a home they cannot afford. Often, expenses are greater than income.
In order to ensure good homeownership practices, take responsibility for the physical property and home expenses. Use money and resources efficiently. Consider all of the advantages and disadvantages. Think about the future.
To practice responsibility:
- Pay the bills on time
- Routinely upkeep the house
- Exercise opportunity, not forcedness
- Consider needs vs. wants