Benzinga
6 Reasons Why You Shouldn’t Buy a Home
Having a home may be a feature of the American dream, but it is not carved in stone! So, if you are working on the idea of giving up home ownership, then, by all means, go for it. However, homeownership is seen as the identity of the property, giving it up is ready to give you a lot of controversy. People in your circle can also criticize. But regardless of what the larger population thinks, there are good reasons here to never buy a home. Homeownership costs a lifetime Homeowners’ lawyers argue that paying rent is expensive, but homeownership is just as expensive. The cost of homeownership does not end with an initial payment. It comes with a lifetime expense, which, compared to renting, will aggravate your financial situation and rob you of peace of mind. For example, utility bills such as electricity and water are unavoidable and must be paid every month. According to Zilo, these bills cost homeowners 2,300 to 4,600 annually. Add to the recurring costs like insulation, heating and cooling maintenance costs, homeowners insurance, property taxes, HOA fees, mortgage payments and yard maintenance, and you incur more annual costs than a tenant living in a house like yours. What’s more, there is no option to choose. Once you buy a home, you will be committed to these costs until you decide to sell it. On the other hand, when you lease or rent a house, you can always be disliked. For example, when times get tough, you can relocate to income-based apartments until you get back on your feet. Home is not a real estate investment Pro-home individuals will try to convince you that your home is an investment. Although there is little truth in this, buying a home as your primary residence is not the same as renting or re-selling. Why Well, when you buy a home for real estate, it gives you a return on investment. For example, when you buy and rent or rent a condo, it gives you a return on investment at least every month or every six months. Terms of your contract with your tenant. But when you buy a house to live in, you have invested, but you will not get any return. If anything, you are putting money into it through maintenance, mortgage payments, and all the other costs mentioned earlier. Also, a building can never be an investment unless you plan to sell it at some point. What makes an investment an investment is the control over its ownership. In other words, it refers to real estate investments, because you can buy it when the price is low and sell it when the value is high, make a profit. But your primary residence is different because you can only wake up one morning. No and decide to sell it until you are forced to cash in, which in most cases means that any losses will lead to loss of fur. Also, when you sign a home purchase agreement, your money is automatically locked, and the only way you can get it is by selling it or taking out a home equity loan. When you rent or lease, you free up your cash, and you can use it to invest in opportunities to increase your wealth. Sure, you could argue that rent is expensive, but that’s not a good reason to buy a home from there. Housing values are not always high It is true that home prices increase over time. Due to inflation, a house bought for $ 100,000 now costs more than ,000 600,000. Which means it’s about to be the most delusional time of the year, as well. However, keep in mind that the real estate market is extremely volatile. The value of your home may be higher now, then it may be due to real estate market crash and / or other external factors. For example, during the Great Depression of 2007-2009, real estate market prices plummeted, causing huge losses to sellers. Current inventory values fell from $ 7.1 million to 4. 1.41 million, a 25% decrease in the value of homes sold during this period. What does this have to do with buying a home? Well, you can buy a home expecting an increase in value, but, when you need to sell it badly, you may find its value to be incredibly low. The result? You end up selling it at a loss. Keep in mind that some factors are out of your control. For example, the real estate market may not crash, but other factors, such as rising crime, lower the value of the neighborhood homes you bought. Such an event would almost buy it, if not, it is impossible to find a buyer who is willing to take it out of your hands even at the purchase price. In other words, unless you have a magic crystal ball, there is no telling what will happen next with the general or your local, real estate market. So if you are buying a house now with the hope that its value will increase in the future, it is better not to buy one, as you can potentially be greatly disappointed. Unless you are tied up and you are rich and cannot afford to buy a house in different parts of the country, home ownership will take you to one place. If you get a fantastic job or entrepreneurial opportunity, you just can’t pack and go. First, you need to market your home and get a realtor to help you sell it. You also have to worry about the market value, and you have to hurry to get to your next place, so you are more likely to sell. It’s the first buyer because you don’t have time to wait for better offers furs. But when you hire, you just need to pack and go. Even if you don’t move, buying a home automatically means you have to deal with the community around you all your life, especially if you don’t plan to sell it. For instance, if you do not like your neighbors, you will have no choice but to learn to live with them. When you rent and don’t like your neighbors, the option of walking is always viable. Homeownership is not for everyone Homeownership is not for everyone. It comes with responsibilities that some people don’t have the skin to handle. For instance, when you buy a home, especially in the HOA community, you need to ensure that the yard is well maintained, the gutters cleaned, your exterior repainted regularly, and other similar works. Not everyone is cut to that level of responsibility, and if this describes you, then never buy a home. Homeownership does not define what makes modern condos great, but you can still enjoy living in them without having to deal with the stress of renting. Homeownership does not define your success in any way. So, if you never want a house, don’t buy it because your peers have a lot of houses. Eventually, the homeowner will leave little to be desired. 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