Before buying a house, you need to know its advantages and its possible deal-breakers. It doesn’t matter if you’re going to rent it, resell it, or live in it: learn the pros and cons of homeownership!
First of all, owning a house gives you the freedom of choosing what you’ll do with it. It can be a residential property for you and your family, or you can turn it into an investment property. The latter would give you, hopefully, cash returns when you decide to rent or sell your house.
Homeownership can have positive impacts on different interest rates. For instance, you can deduct the interest on a Home Equity Loan, which lets you borrow against your house. Although you may want to check if this is a good idea first! You can also receive a tax deduction of your mortgage interest.
There’s also the possibility of having insurance against all kinds of losses: whether it’s through theft, disaster, or damage. This is good to consider especially if you’re planning on actually living in the house, which can be thought of by itself as an advantage of homeowning.
Once you buy a house, chances are it’ll be more difficult to resell it than a REIT (Real Estate Investment Trust). This is one of the 5 ways to invest in real estate to create multiple streams of income. The thing that makes selling a house more difficult is its illiquidity. You need to consider it before buying in order to know that you’ll be able to maintain it for that long before you find a buyer.
Maintenance costs are also important. You’ll have to pay for those even if you’re not the one living in the house. Every tweak, upgrade, and repairment needs to be taken care of and, in most cases, this is the owner’s job.
If you choose to rent your house, finding a good and reliable tenant can be a difficult task. You should look for one that will take care of the place they live in and who’ll pay their rent on time. If someone like that appears, it’ll become another draining task to get them to stay in the house.