Five Advantages and Disadvantages of Owning a Home

I have owned a home for twelve years. I've listed five advantages and disadvantages of owning a home, compared to renting. Don't get me wrong, I love owning my home rather than renting an apartment. Home ownership gives the owner a sense of security, as well as accomplishment-it may also be a blessing one day. These are a few things I adjusted to after moving into my home. Owning a home is a great investment--although not for everyone. A financial commitment and extensive planning are two important factors to keep in mind before deciding to purchase a home.

Advantages:

1. It Is Yours

It is your home, you are no longer renting. As far as I'm concerned, this is the most important advantage of all.

2. No Landlord

No more landlords. You do not have to deal with a landlord anymore, for any reason. You are the landlord.

3. No Rent Increase

You don't have to worry about rent increases anymore. Monthly mortgage payments will remain the same each month. Even better, the mortgage paid goes into the equity of the home. Home equity is an emergency line of credit. These funds can be used to make home improvements, pay off high bills or other unexpected expenses.

4. Tax Deductions

The interest paid on a mortgage loan and property taxes are tax deductible.

5. Parking Space

You have your own parking space now--maybe even with a garage. You no longer have to deal with finding a parking space close to your front door.

Disadvantages:

1. Higher Utilities

Utility bills will be higher compared to previous utility bills while living in an apartment or smaller house.

2. Homeowner's Insurance

A home cannot be purchased without homeowner's insurance. In most cases this insurance is included in the monthly mortgage payment. It protects the homeowner from losses or damages to the home or personal property and from liability damages to other people or property.

3. Maintaining Lawn And Yard

Most homes come with a decent size yard. You are now responsible for the maintenance of your own lawn and yard. This was a challenge for me when I bought my home. I never mowed a lawn or maintained a yard before. Eventually I became tired of paying someone to do this for me, so I purchased a lawn mower and tools for the yard. Since then my son and I take care of it ourselves.

4. Property Taxes

Property taxes have to be paid on the assessed value of a home. These taxes are paid annually by the property owner to local and state governments, which are determined by the city property appraiser.

5. Unexpected Household Repairs and Maintenance

Always be prepared financially for an unexpected household repair or maintenance. This was a major factor in making my decision to purchase a home.