To Buy or Not To Buy - In the present situations

Whether to buy a home or not in the present situation may be a very big question to you. Present number in U.S. are not very encouraging. The home ownership in the U.S. has taken a deep plunge setting a record. Home ownership is going down and the factors are many. We need to see whether these factors will affect you or not.

The mortgage crisis and the resulting foreclosure problem in the U.S. may force you to think twice about owning a house.

Advantages of owning a home

1. You can live your life independently. Live it as you like it. Your children can enjoy the house and the surrounding while they play.
2. Owning a home boosts self esteem and pride. It may be considered as a milestone of your life.
3. You will have home equity, which is a wealth for you. If you pay rent that will never accrue for you.
4. You can get tax relief. You can claim tax relief on the money you pay as interest on the home mortgage.
5. As the price of the houses keep on increasing, so you can enjoy your increasing home equity. The more your home equity increases, the more money you have in your possession. Sometimes the price of the houses increases two three folds.
6. Owning a home when you are young is good, because it will help you to pay off the mortgage as soon as possible. Then you can enjoy your life when you are old.

Disadvantages of owning a house

• 1. You have to take the responsibility of the house. In case of any repairs, you have to bear the cost and the time needed.
• 2. You will have less cash in hand because you will have to pay the monthly mortgages.
• 3. You will need lot of cash to pay as the down payment for the house.
• 4. Relocation is a big problem when you have a home.