Being a Homeowner Is Not For Everyone - Finances Demystified

Being a Homeowner Is Not For Everyone

The “American Dream” used to include homeownership, specifically a white picket fence. With the downturn in the housing market and so many people underwater in their homes (owing more than what their houses are worth), it has freaked many people out, especially millennials when it comes to homeownership.  Oh and we can’t forget to include the student loan payments that essentially equal the mortgage payments that could have been.  Even with these potential barriers to being a homeowner, the upsides of owning a home are still there.

I was having a conversation about homeownership with a friend recently, and it wasn’t the first time I have had this convo with someone. She explained to me that she may not ever want to become a homeowner, as she didn’t think it was for everyone, especially not her. I totally understand where she was coming from, as I stated before, with all of the negative things surrounding homeownership over the past few years, it would freak any potential homeowner out.

My response to her was this, “I agree being a homeowner is not for everyone, but it is for the person who would prefer to pay a mortgage for a maximum of 30 years instead of paying rent for the rest of their life.”  She immediately agreed and stated that she never thought about it that way.

In addition to not having to pay rent for the rest of your life, there are tons of other benefits such as the mortgage interest you can write off every year (gotta take advantage of this tax credit while it’s still around), and being able to pass on a asset to the people you care about the most, to name a few.  If you are diligent in doing research on the area you are purchasing in, only buying a home you can afford (even if the interest rate increases) and obtaining a fixed rate loan if possible, you should be fine!

What are your thoughts on being a homeowner?

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