Benzinga
6 Reasons Why You Should Not Buy A Home
Owning a home might be the epitome of the American dream, but it’s not engraved in stone! So, if you’ve been toying with the idea of giving up homeownership, then, by all means, go for it. However, given that homeownership is perceived as the hallmark of wealth, giving it up is set to bring you a lot of controversies. Individuals in your circle might even criticize. But regardless of what the greater population thinks, here are good reasons never to buy a home.Homeownership Costs Are Lifelong Advocates for homeownership often argue that paying rent is costly, but homeownership is equally as expensive. Homeownership costs do not end with that initial payment. It comes with lifelong costs, which, compared to renting, will create a dent in your finances and take away your peace of mind. For instance, utility bills like electricity and water are unavoidable and must be paid every month. According to Zillow, these bills alone cost homeowners between $2,300 and $4,600 annually. Add in recurring costs like insulation, heating and cooling maintenance costs, homeowners insurance, property taxes, HOA fees, mortgage payments, and yard maintenance, and chances are you end up spending more annually than a renter residing in a house similar to yours. What’s more, there’s no opting out. Once you purchase a home, you commit to these costs unless you decide to sell it. On the other hand, when you lease or rent a home, you can always opt-out. For example, when times become hard, you can always shift to income based apartments until you’re back on your feet again. A Home Is Not A Real Estate Investment Pro-home individuals will try to convince you that your home is an investment. Although there’s some truth in this, buying a house as your primary residence is not the same as buying one to rent out or resale. Why? Well, when you purchase a home for real estate, it brings you a return on investment.For instance, when you purchase a condo and rent or lease it out, it offers you returns on investment at least every month or every six months based on the terms of your agreement with your tenant. But when you purchase a home to live in, you will have invested, but you will not get any returns. If anything, you will be the one putting money into it through maintenance, mortgage payments, and all other costs mentioned earlier. Plus, a house can never be an investment if you don’t plan on selling it at any point. What makes an investment an investment is your control over its ownership. In other words, a real estate investment is referred to as such because you can buy it when its value is low and sell it when the value is high, making profits.But your primary residence is different because you cannot just wake up one morning and decide to sell it unless you are hard-pressed for cash, which in most cases means you will take…
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