January 21, 2024 is National Own Your Own Home Day. If you are thinking of buying a home, consider the pros and cons of home ownership.
Pros of Buying a Home
- Building equity: As you pay down your mortgage loan, you build equity in your home. If home values are on the rise, that equity will build faster.
- Stable payments: With a fixed rate mortgage, your principal and interest payments are set for as long as you have the loan.
- Tax benefits: You pay no capital gains tax on the profit when you sell your home up to the limit of $250,000 for single taxpayers and $500,000 for married taxpayers.
- Stability: With homeownership you become a part of the neighborhood and the community in which you live and put down roots.
Cons of Buying a Home
- Paying for maintenance and repairs: When you own a home you are responsible for the cost of all the maintenance and home repairs.
- Down payment: Most mortgages require some sort of down payment. Even as low as 3% can add up especially when home values are on the rise.
- Property taxes: Homeownership comes with property tax costs which can substantially increase your monthly principal and interest payment.
- Difficulty in moving: Depending on the market, moving may be harder with home ownership since you have to sell your home to get the equity. Depending on the market, selling you home can be a lengthy process.
After debating all the pros and cons, are you thinking that home ownership may be for you? Contact us today to discuss all of your mortgage options!