Realty World Baywide Properties

The advantages of buying a home:

• The home may increase in value, resulting in a significant gain in net worth.

• The emotional high derived from ownership and the sense of status created both at home and in the community.

• Homeowner’s tend to have better credit ratings.

• The longer you live in a home, the more equity you build that can be leveraged using an emergency loan.

• Mortgage payments contribute to an investment, particularly if the property is located where it increases in value over a period of years.

• If you have a fixed loan, your payment will remain relatively constant for the life of the loan.

• The interest paid on your loan and taxes are legitimate income tax deductions.

• Ownership may contribute to security, especially in retirement years when income normally decreases.

• A homeowner can borrow against his/her equity, as the value of the home increases.

• More space may be available for family members and their activities.

• As a homeowner you have the freedom to make improvements and changes to the home and surroundings as desired (although a development or association may have restrictions and prohibitions).

• Home ownership can contribute to the general well-being and sense of “roots” of the family, especially for children.

• Homeowners generally are concerned about community affairs and how they may affect their property.

The DISADVANTAGES of owning a home

• A substantial down payment is needed.

• Owning a home requires a substantial commitment in time, emotions, and money.

• Homes may decrease in value if the neighborhood deteriorates, changes quickly, or the real estate market suffers a decline.

• Due to the initial expense of buying a home, financial resources may be limited or reduced for other purchases or activities.

• Maintenance and repairs are inevitable and could be costly.

• Part of home ownership includes procuring enough income to afford insurance of all kinds including loss of the house as a result of a natural disaster.

• Budgeting is cumbersome and a must in preparation for maintenance, repairs, home improvements, and/or home ownership/association dues.

• Depending on where you live property taxes could increase dramatically.

• The cost of buying a home should also include the cost of moving into it and furnishing it.

• Shifts in the neighborhood could drastically affect ones lifestyle.

• Security is an issue if you are not home often due to travel.

• Unexpected loss of income due to job termination or unemployment may limit money available for home ownership costs.