A home is one of the most important--and most expensive--purchases that a person can make in their life. While homeownership certainly has its pros, owning your own home does not come without some downsides. If you're in the process of deciding whether or not to purchase a home, Melvin Monachan has compiled a list of things to think about.
Benefits of Homeownership
- You're investing in something that is yours. When you rent a home or apartment, you are putting hundreds--or even thousands--of dollars each month into a location in which you do not have an interest. When you own your home, each mortgage payment brings you a little bit closer to owning your home free and clear.
- Homes typically increase in value. Barring an economic depression or other financial crisis, homes typically increase in value. This means that the home that you purchase may be worth tens of thousands of dollars more than what you paid if you sell the home later in life.
- You have more privacy than in a rental situation. As opposed to renting, owning a home affords you a greater level of privacy. Gone are the days where your landlord can pop in to make repairs or check the fire extinguisher--the only people who can enter your purchased home are entering on your own terms.
Downsides to Homeownership
- Homeownership is a long-term commitment. No matter how you go about purchasing your home, the purchase of a home is quite the long-term commitment. A mortgage term is generally anywhere from ten to thirty years, leaving you responsible for decades of mortgage payments. If you plan on moving in the near future or don't know where your career will take you, it may be wiser to rent for the time being.
- You're responsible for any breaks or defects. Gone are the days where you call up your landlord to replace his broken refrigerator or fix the hole in her roof--when you own your home, you also own all of the problems that may arise with your home and everything in it. A few costly repairs can have a devastating impact on your wallet if you aren't fully prepared to own a home.
- You usually have to put down a down-payment. Whereas you may have to put down the first month's payment if you rent your home or apartment, obtaining a mortgage to purchase a home almost always requires a hefty down-payment. Putting down twenty percent toward your home can require years and years of saving money, and if you put down less than that, you may have to pay costly mortgage insurance to your lender.
Ready to Close? We Can Help
If you are in the process of purchasing a home in New York State and need assistance with your real estate closing, The Law Offices of Melvin Monachan, PLLC is here to help. From pre-contract to post-closing, our legal team is dedicated to providing you with the legal representation you deserve during the purchase of your home. To get answers to your real estate questions, or to schedule your closing, fill out an online contact form or call (516) 714-5763 today.