Tiffany Sebasitan, Realtor

Why Own?

There are many great reasons to consider owning a home:

  • You'll have a place that is yours!
    You'll own it, have a place to raise your children and become a part of your community. You can pass your home down to your children, and their children, creating security for generations to come.

  • You may pay less to own a home than you would to rent – and it's yours at the end!
    Homeownership can reduce the federal income taxes you pay. You can deduct the interest on your home mortgage and property taxes you pay on your home on the tax returns you file each year. These tax savings partially reduce, or offset somewhat, the actual cost of owning your home.

  • Your monthly payments won't ever go up if you choose a fixed-rate mortgage!
    If you choose a mortgage with a fixed-interest rate (one that stays the same for the life of the loan, say 30 years), you'll pay the same mortgage payment each month for the entire 30 years of the loan (if your taxes go up, your escrow will go up – increasing your monthly payment).

  • You'll build a good nest egg!
    Owning a home and building equity is the single greatest source of financial security and independence for the majority of people who've taken this step 

What Are the Risks?

Overall, homeownership is a good investment for most people, but there are risks. If you understand the benefits and risks of homeownership, you can make the best decision about when to buy a home.

So what are the risks of homeownership?

  • Monthly housing expenses can increase.
    Your monthly mortgage payment may be larger than your rent. These higher monthly payments may be offset by a tax benefit at the end of the year. Talk to a tax professional to understand your particular situation.

  • You become your own landlord.
    If an appliance breaks, you will have to pay for its repair or replacement. You are also responsible for the maintenance and upkeep of your home and your property.

  • You may need to sell your house due to life circumstances.
    Depending on the local real estate market, you might not be able to sell your home quickly. You may also face additional expenses, such as hiring a real estate professional.

  • Property values can depreciate.
    You can lose value in your home for a number of reasons, such as a recession, the condition of your home not being kept up, or a drop in a neighborhood's home values. If your home loses value and you have to sell it for less than you owe, you will be required to repay the full mortgage.

  • Downsizing quickly may be difficult.
    In times of financial difficulty it is easier to find a cheaper rental than sell a house. If you need to sell your home, it may take some time and you'll still be responsible for the mortgage until it is sold.


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