6 reasons you should not buy a home
Owning a house may symbolize the American dream, but it is not engraved in stone! So, if you’re done with the idea of leaving the homeowner, then, by all means, go for it. However, given that homeownership is regarded as the hallmark of wealth, giving it is determined to bring a lot of controversy to you. Individuals in your circle may also criticize. But regardless of what the large population thinks, there are never good reasons to buy a home here. What Does the Cost of a Homeowner Lifetime-to-Life Advocates argue that paying rent is expensive, but homemade is equally expensive. The homeowner’s cost does not end with that initial payment. It comes with a lifetime cost that, compared to the rental, will dent your finances and take away your peace of mind. For example, utility bills such as electricity and water are unavoidable and must be paid every month. According to Zillow, these bills alone cost homeowners between $ 2,300 to $ 4,600 annually. Include recurring costs such as insulation, heating and cooling maintenance costs, homebuyer insurance, property tax, HOA fees, mortgage payments and yard maintenance, and chances are you are spending more annually than a tenant living in a house. What’s more, there is no alternative. Once you buy a home, you are committed to these costs until you decide to sell it. On the other hand, when you lease or rent a house, you can always opt-out. For example, when times get tough, you can always shift to an income-based apartment until you are back on your feet again. A house is not a real estate investment. Pro-home people will try to convince you that your house is an investment. While there is some truth to this, buying a house as your primary residence is not the same as buying one as rent or resale. Why? Well, when you buy a house for real estate, it gives you a return on investment. For example, when you buy a condo and rent it or rent it, it provides you with a return on investment at least every month or every six months. The terms of your agreement with your tenant. But when you buy a house to live, you must have invested, but you will not get any return. If anything, you will pour money into it through maintenance, mortgage payments and all other costs. Also, if you do not plan to sell it at any point, a house can never be an investment. What makes an investment an investment is control over your ownership. In other words, a real estate investment is referred to this way because you can buy it when its value is low and sell it when the price is high, making a profit. But your primary residence is different because you simply cannot wake up one morning and decide to sell it until you are hard on cash, meaning that in most cases you will lose any leads that lead to losses. Will take the offer. Also, when you sign a home purchase agreement, your money automatically closes, and the only way you can get it back or sell it is to take a home equity loan. When you rent or lease, you free up your cash, and you can use it to invest in opportunities that increase your wealth. Also, you could argue that rent is expensive, but it is not a good enough reason to buy a home from there. There are lots of modern, well-furnished, low-income apartments that will help you keep costs down. Housing values are not always high. It is true that value increases in a house over time. Due to inflation, a home purchased for $ 100,000 is worth more than $ 600,000 so far. That is, you will earn good profit by selling it. However, keep in mind that the real estate market is incredibly volatile. The value of your home may now be higher, then it may fall sharply due to an accident and / or other external factors in the real estate market. For example, during the Great Financial Recession of 2007–2009, there was a sharp decline in real estate market values, which led to large losses to sellers. The current listing price fell from $ 7.1 million to $ 4.1 million, a 25% drop in the value of homes sold during the period. What to do to buy a house? Okay, you can buy a house expecting an increase in value, but instead, its value is incredibly low when you need to sell it. result? You are selling it at a loss. Keep in mind that some factors are beyond your control. For example, the real estate market may not crash, but due to other factors such as an increase in crime, the value of homes in the neighborhood that you bought your home goes down. Such an event will almost make it, if not, impossible to find a buyer who is ready to buy it with your hands, even at the expense of buying. In other words, unless you have a magical crystal ball, no one is telling you what will happen next. General, or with your local, real estate market. If you are buying a home now with the expectation that its value will increase in the future, you are better off not buying one as you may be potentially disappointed. A house tis you down. Unless you are rich and can afford to buy a house in different parts of the country, the homeowner takes you to one place. If you get a great job or entrepreneurial opportunity, you simply cannot pack nor leave. First, you need to put your home on the market and find a realtor to help sell it. You also have to worry about market prices, and since you are in a hurry to move to your next location, the likelihood that you will sell is to the first buyer because you do not have time to wait for better offers. But when you rent, all you have to do is pack it and leave. Even if you are not moving, buying a home means that you will have to deal with the community around you for the rest of your life, especially if you do not plan to sell it. For example, even if you do not like your neighbors, you will have no choice but to learn to work with them. When you rent and do not like your neighbors, the option of walking away is always feasible. Homeownership is not for everyone. Everyone is cut off to live outside the home. It comes with responsibilities that some people just don’t have the skin to handle. For example, when you buy a house, especially in an HOA community, you need to make sure that the yard is well maintained, clean the gutters, regularly repeat your outdoor and other similar tasks. . Not everyone is cut out for that level of responsibility, and if it tells you, never buy a house. Homeownership does not define You’wning that a modern condo is great, but you can still enjoy living in it to deal with the stress of ownership by bus lease. Homeownership does not in any way define your success. So, if you have never wanted a home, do not buy it because your colleagues have many houses. Ultimately, homeworkship falls far short of being desired. More from Benzinga. * Click here for option trades from Benzinga * Amazon Opening Three San Antonio facilities * The psychology behind M1 Finance’s platform and its focus on financial well being (C) 2020 Benzinga. com. Benzinga does not provide investment advice. All rights reserved.