There are many pros and cons associated with homeownership. One of the most obvious advantages and one of the most often cited by those on the fence about homeownership is the obvious tax benefit. With property taxes increasing over the years, it is easy to see how having a mortgage could be a large financial windfall for the individual or couple. Also, the purchase of a home comes with a sense of ownership that may not be available with other types of loans. Renting may be an option, but most would agree that owning a house provides a sense of ownership and security.

The disadvantages of homeownership are fairly easy to see as well. For instance, if an individual or couple decides to rent, they run into the same problem that car owners have been dealing with for years: maintaining monthly payments. However, there are some federal tax benefits that can make owning a house a more viable long-term investment. One of the biggest advantages of homeownership is that the individual or couple will own a piece of property. This ownership is reflected in their income on their taxes. A house is much harder to flip than a piece of property that is not owned by anyone. This means that the homeowner will be required to maintain certain monthly payments on their residence. If the monthly expenses are too much, the homeowner will have to get creative to come up with the money to make the necessary payments. Most people do manage to keep up with the payments, but for some, that stability can be misused if they decide to sell at a later date.

Another thing to consider is the stability of the monthly house payment. While there will always be some fluctuations, most homeowners find that their monthly payments remain largely steady. If anything were to change, such as an unexpected illness or a death in the family, the immediate financial impact would be felt by the house payment and the interest rate for the loan. Instead, they can focus on trying to understand the changes and how they will affect them.

The advantage of this type of investment is the equity that can be built into the home. There are many ways to increase equity and one of the most common is to rent out the property. The interest rates may be slightly higher than those on a standard mortgage, but for those homeowners who plan on living in the home for quite a few years, it may well be worth it.
The disadvantage of renting is the equity that can be built into the property. Some renters become too attached to the home and may not want to leave it. This can be a problem if the renter’s insurance is too expensive. Also, taxes must be paid on the equity that is in the home, even if the payments are smaller than what would be paid with a conventional mortgage. In addition, in most states, homeowners must pay property tax on the amount of equity they have in the house.

There are many tax advantages to owning as well. If there is an unused basement, the homeowner can use it for storage. Most homeowners will use the garage when they have visitors and will not use the basement at all. These tax advantages are very significant.

It is possible to have advantages and disadvantages of owning a home. The decision should be based upon the individual’s personal situation and lifestyle. While it is almost certain that the advantages will outweigh the disadvantages, everyone will have a different view on what is most important to their lifestyle. Anyone who is looking at owning a home should consult with a real estate professional to determine which option is the best one for them.