Home ownership involves a long-term financial commitment,
not only to monthly mortgage
payments but also to utilities, homeowner's
insurance, and maintenance and repair costs, as well. Your monthly payments
may be higher than the rent you're paying now, not to mention the upfront costs
of making a 5-10% down payment plus closing costs.. Homeownership is not advisable
it if it means you won't have a penny left over for anything else.
find out how much you can really afford to pay for a house in the Steps ahead.
feet isn't just for athletes. It applies equally to homes. If you aren't willing
to commit to owning for at least five years to allow your investment to appreciate,
don't buy. That means you won't be able pack up your stuff and leave with a month's
notice, which you can do as long as you remain a renter.
price of home ownership is decreased mobility.
If you expect to move in
the next year or two because of a job change or some other reason, now may NOT
be the time to buy.
All the around-the-house jobs fall into your lap,
the minute you become an owner. Someone (meaning you or someone you pay or cajole)
has to mow the lawn and rake leaves; fix the faucet; call (and pay) the air conditioner
repairman or roofer. All those things you took for granted as a renter are now
your responsibility as a homeowner. That's why some people choose to buy into
a condominium. This option minimizes the energy and time required for proper home
If the real estate market takes a turn for the worse
and home values fall, you run the risk of losing money on your investment. There's
always some risk involved in real estate, especially if you buy during an upswing
when home values are high.
Foreclosure is the worst homeowner nightmare. But don't worry, it really shouldn't happen
if you make the right financial decision about purchase in the first place.
should you fail to keep up your mortgage payments, even for reasons beyond your control, the lender may foreclose on and sell your property.
This results in the loss of not only your home but also your investment and your
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