Home ownership is a form of housing tenure where an individual owns the home in which he/she lives. The home can be house, apartment, condominium, or a housing cooperative. In addition to providing housing, owner occupancy also functions as a real estate investment. Owing a house is usually most expensive single purchase an individual or family makes, and often costs several times the annual household income.
Given the high cost, most individuals do not have enough savings on hand to pay the entire amount outright. In developed countries like the United State of America, mortgage loans are available from financial institutions in return for the interest of the homeowner fails to meet the agreed repayment schedule, a foreclosure (known as a repossession in some countries) which may result.
This article will briefly review, and discuss the benefits and challenges of Home Ownership
Home Ownership is an Asset
An asset is a resource with economic value that an individual or a corporation owns and controls with the expectation that it will provide a future benefit. A house is an asset when it is own an individual but a liability when it is mortgaged. A house can also become an asset by running a personal franchise or a home business in it, generating some income improving your personal cash flow
For most people, the house represents the single, biggest, financial asset. Therefore, it doesn’t make sense, to proceed with wisdom, judgment, and quality planning and preparation. Still many believe and invest in their home as their main asset. Remember this, using your home to run a profitable personal franchise allows you to leverage your “anyway time”. your current assets such as computers, living room, and other resources to make money from them rather then spend money on them. Read more
Pride of Ownership
Owing a house and maintaining it will surely give you a sense of accomplishment and pride of ownership. The homeowner has no landlord or rent payments which can increase every year. The buyer can maintain his home according to his/her wishes, enjoy pet ownership if desired, and relax in his/her own yard. The homeowner has sought relief from high rents by home ownership. However, the homeowner will be responsible for property taxes and monthly mortgage payments.
Sometimes, when you rent a house, it seems you are pursuing a temporary situation, but once, you acquire our own place, it often, represents, a sense of a permanent status, and achievement. Most people have the need, to satisfy, both, their logical needs, as well as emotional ones.
Owning a home doesn’t help you to only achieve a sense of pride an accomplishment, it’s also a status symbol that you can use to your advantage. Here are 4 reasons to remind yourself why homeownership is the ultimate boss move. t. There’s no doubt your friends and family will be in awe of your hosting skills, they may even back off a little about finding your perfect partner, which brings us to the next point.
Owning a House versus Renting
You have to live somewhere, so why does it mean, so much, to so many people to own their house, rather than rent one? Perhaps, it says, you are succeeding, in some way. Maybe, it represents a new phase, in your lives, and doing something for the future. When it comes to buying a house vs. renting a house, there is always a passionate debate about which makes the most financial sense. Both sides have valid points, so it can be a bit confusing.
A common argument for buying a house is, ‘Why would you pay monthly rent to a landlord instead of building equity in a home for yourself?. In reality, there are many financial reasons why renting may be more compelling in developed countries. You also need to make sure you understand whether you are even in a good position to buy a house. Your finances are not your only consideration either.
You cannot look at home ownership without considering the financial ramifications, planning, and preparation. There is a need for commitment, and personal vision, to prepare to purchase a home or build one, plus a degree of wisdom, and judgment, to make the best possible, personal decision. Often, the difference between being a happy homeowner, and a stressed one, is, reducing unnecessary stresses and tensions, by learning, discovering, considering, and planning, properly, to proceed, in the wisest personal manner.
To own a house in the developed countries, it is very important to consider how such a purchase will affect your finances and your lifestyle. It makes sense to review all of the advantages and disadvantages of becoming a homeowner before making this big commitment. Buying a house is a major financial move, you need to wise and think deeply at the positive and negative ascpets of it involves.
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