Homeownership Pros and Cons

Advantages:

• Personal gratification in having a place of your own
• Tax benefits (deductible mortgage interest payments)
• Create assets through equity in your home rather than simply paying rent
• Investment potential (if the house increases in value)
• Stable mortgage payments (if fixed rate), compared to generally rising rents
• Independence
• Pride of ownership
• Planting roots/stability
• Do what you want/decorate/you’re the boss...etc.
• Greater sense of security

Disadvantages:

• Large cash investment/high up-front costs (down payment, closing costs)
• Responsibility for property taxes
• Responsibility for maintenance
• Responsibility for repairs
• Risk of foreclosure (in the event of nonpayment)
• Probably larger monthly housing payment
• Less mobility than renting
• Cannot usually sell a house quickly
• No guarantee of property appreciation