Have you heard that having a home of your own is not for everyone? It may seem strange, but I guarantee it is real. What’s more, although the benefits that you buy your own house can bring are unquestionable, for many being owner can have disadvantages. Here I mention some of them;
Owning is expensive.
One thinks, rightly, that you can own a home and pay the same and sometimes less than what you pay for rent. But the difference is that renting the responsibilities that I mention below are the responsibility of the owners, and in your home, it is your responsibility. The expenses that you will have to incur are as follows;
The monthly payment indicated by your bank, which is defined at least by the principal and interest.
Some are mandatory, required by the bank, including earthquake, hurricane or fire policies, in some places, others require flooding. In addition, there are others that you can recommend your insurance agent and although not forced, represent peace of mind.
If you only have one property, depending on where you live, you can apply for a tax exemption, which is a relief but does not mean that you will not have to pay your taxes. In some cases, they charge you within the monthly payment you make to the bank, in others, you have to pay them directly once a year.
Increasingly, we must pay HOA dues in independent communities, not as before it was almost always paid in condominiums only. Do not be confused even if the neighborhood does not have controlled access i.e. is an open community, many are paid a monthly fee. If yours charges, it is mandatory, not optional even if you do not use the facilities.
It is not mandatory, but if you want to take care of your investment, you should always be aware of the necessary improvements. For example, damage to the structure, bathrooms or kitchen, but also if electrical equipment is damaged, you should fix them immediately. This is in addition to any cosmetic enhancements you want to make just for the pleasure of seeing your beautiful home. It is best to separate a monthly budget as a kind of improvement fund, so that when you have to do, it is not so economically costly.
Owners are limited in their removal opportunities.
The purchase of a property ‘binds you’ and it is a reality, not a myth. Look why it is important that you make a purchase to the safe, and that the home is convenient for you from the beginning;
Many loans require you to live the property. Some will approve the purchase to be your main residence, which means that you must live in it and not rent it unless you meet certain requirements.
Having a mortgage in your name limits your opportunities to qualify to buy another home and even rent another. You must prove that you can meet both payment commitments at once.
Now it is not so easy to sell a property that you do not like. Getting ‘equity’ or gain in a market as slow as that of real estate in recent years is very difficult. Those who buy must typically wait several years before making a profit.
When you stop paying the house, the impact is overwhelming.
Problems occur when least expected. That’s why it’s important to have an emergency fund to pay for your home. Although this is a healthy practice even if you are a tenant, it is vital when you are the owner. Failure to do so is not a healthy option.
Delays in your mortgage payments have a big impact on your credit history, greater than delays in the rent that many times are not reflected in the credit.
However, owning a home is a great satisfaction and if you can afford, you should go for buying your own home but wit due preparations. If you are one rent, you can make off plan property investment to find a good deal in terms of total finances required or to be lend.