Weighing the Pros and Cons of Owning a Home

If you are planning to buy Lehi, Utah real estate, but you are still undecided due to the factors you need to consider in owning a home, you’ve come to the right place.

Buying a home may be the biggest purchase you’ll ever make, so you need to weigh the pros and cons before jumping in.

There are benefits to homeownership, but there are risks as well. We share them below to help you make an informed decision before signing on the dotted line.

What are the advantages of homeownership?

  1. A house is a good long-term investment.

Homes can generally depreciate as time goes by, but as long as you are faithful with maintenance and have the funds to renovate, they can increase in value. If your home loses its value, there’s still the land beneath it that can be more valuable.

If you come across a rundown home almost uninhabitable, a seller can still make money by demolishing the home and selling the land at a higher price.

Thinking about buying a home? Get in touch with our loan officers to know if you qualify for a mortgage in Utah.

  1. Owning a home gives you more flexibility.

Owning a home gives you the benefit of renovating to your liking. You can also have more privacy when you choose homeownership. You have full control if you want to improve or upgrade your home. 

  1. Gives you the ability to set up a home office

Since the pandemic hit, the work-from-home setup has gained popularity, and it seems like it will continue. Owning a home allows you to set up your own work-at-home space that is both comfortable and can get the most productivity out of you.

Found a property that can utilize your work-from-home setup? A Utah mortgage advisor can help you finance the purchase.

  1. Land almost always appreciates.

You may have heard it time and again when buying real estate, one of the most important things to consider is location, location, location. If you pick the right location for your upcoming home purchase, you’ll profit from rising market values down the road. 

Real estate increases in value due to the land you build on. Appreciation would depend on the neighborhood and the amenities you can find near you, like schools, hospitals, shopping centers, parks, etc.

If you are in the market for an investment property in Lehi, UT you can apply for an investment home loan approval from Boom Mortgage. Take advantage of getting the best rates in the market today.

  1. You can enjoy tax benefits.

Owning a home can help you reduce the taxes you pay to the federal government. You can deduct your mortgage interest on loans up to $750,000, plus additional deductions on state, local, and property taxes up to $10,000.  

What are the risks you need to know as a homeowner?

  1. Expect high upfront costs.

The upfront costs of buying a home can be high, including your down payment, closing costs, and renovation expenses if needed. To recover the costs, experts recommend staying at least five years in your home.

  1. Potential depreciation

Not all homes appreciate value. Your home value may shrink if the economy crashes or a housing crisis hits. The actual structure can also depreciate, especially if the owner is not faithful with maintenance and repairs.

  1. High upkeep and maintenance costs

If you are not the type who gets excited doing DIY repairs, the maintenance costs on your home can pile up quickly. Roof repairs, kitchen sink leaks, plumbing problems, a busted air conditioner, snow in the gutters, and a lawn that needs mowing are just some of the expenses you need to add to your budget.

  1. Not as liquid as other investments

When you need instant cash, selling your home may not solve your problem since it may take a while before it gets sold. Stocks are more liquid since you can access that cash much sooner after selling them.

Are you ready to buy your new Lehi, UT home?

Now that you’ve seen the pros and cons of home ownership, you can now decide if buying a home is for you or not. If you choose to buy investment property in Utah, Boom Mortgage can help.

Drop us a line so we can discuss the best deals available for your home purchase.

 


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.