How Owning A Home Can Cost You
April 19, 2009 by Jennifer Chait
Filed under real-estate
Recently the housing market has improved (at least in my neck of the woods) which has prompted some folks I know to consider home buying. Purchasing a home can save you money in some ways, allow you some equity, and is a huge bump emotionally – i.e. “Hey, I’ve invested in my future – go me!”
That said, there are also some ways a home can cost you. Buying a home is not hands down, 100%, all the time the best idea for every person or situation. Here are some potential downsides of home owning that may cost you…
- Property values are never guaranteed to appreciate. A home can lose value for any number of reasons; recession, bad home ownership ethics (i.e. you let the home go), if your neighbors suck, and more. A home won’t guarantee later wealth for you.
- It’s expensive to get used to. Rent is normally cheaper than a mortgage. If you’re used to lower rent it can be a shock at first. On the up side, you may be bale to get some money back via tax benefits – but you’ll need to speak to a tax pro in order to assess your personal situation.
- You are responsible for EVERYTHING! Forget the days of calling your landlord to replace the dishwasher or fix a leaky toilet. If something breaks you’ve got to fix it. Worse, many issues must be fixed right away. If you let some stuff go, it can get worse, and cost more. Be prepared to set aside a maintenance budget.
- Selling can be a pain in the a**. Say you get terrible neighbors. Say you get a job transfer. Say you lose some income and can’t afford the mortgage. If you have to sell it’s going to cost you fees, updates, and probably time away from work and depending on when sell, the market could be good or bad. Selling is especially problematic when you need to sell right away.
What do you think? What are some other downsides of home ownership?
[image via stock.xchng]
