Thursday, September 18, 2008

Upsides to Owning



Making the decision to purchase a home is nothing to scoff at. Before you make this life-altering choice, there are a few things to take into consideration.

First of all, when you own a house, it's yours. If you want to paint the walls fuschia and orange, no one can stop you. If you've always dreamed of covering a wall with family photos, there's no need to hesitate and wonder how your landlord will react. Your house is literally an empty canvas. If you always wanted a studio where you could try your hand at painting, owning a home is your chance to build one. 

This freedom and permanence is often the first reason people migrate from renting to owning. It extends beyond the realm of paint colors and layout choices--when you own, you also take care of maintenance, which can either be a blessing or a curse. If you're sick of dealing with landlords and leases, your credit score is good, and you know you'll be in the same place for a while, it might be time to start looking for a house to buy. 

Another huge upside to owning is financial. When you pay rent, you're essentially not making any progress toward owning anything--you're simply paying for the privilege of occupying space that's owned by someone else. When you own a house, every mortgage payment you make takes you one step further up the ladder towards ownership. Plus, if you hit a financial roadblock or you need to make a major purchase, you can always refinance your home or borrow against your equity (the amount of money you've payed toward the price of your house.... so if your house costs five hundred thousand and you've payed one hundred thousand in mortgage payments, your equity is one hundred thousand and you can borrow against that money). 

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