All of us have dreams, and most of us share the same dream: to own a house. The application process for a housing loan can be burdensome and time-consuming.
Before you devote your time to getting the approval for your home loan, spend some time to read through the pros and cons of buying a house.
What are the advantages of buying a house?
This question may seem irrelevant to those who are going to apply for a housing loan. However, when you are on the verge of breaking down due to the suffocating financial obligations involved, these are the reasons you should keep reminding yourself to keep holding on. Your perseverance in pursuing or defending your dream home will definitely paid off someday.
- On the long-term, the cost of ownership is lesser than renting a house.
- You have full control over your property.
- The acquisition of a house is actually a capital gain. It is an increase in the value of a capital asset (investment or real estate) as the property has a higher worth than the original purchase price. However, the gain is not realized until the asset is sold.
- Your property taxes can be itemized for tax reductions.
- You will have a sense of security that comes from owning a home as your home is well-protected from the inflation.
- Lastly, you can design, remodel and decorate your own home without any restrictions. Imagine the sense of pride and achievement that bubbling in your heart when you see your beautiful artwork. All the hard work paid off.
Do not regret the decision to purchase a home. Buying a house, especially your dream home is always easier than selling one.
What are the Drawbacks of Buying a house?
Despite the various advantages, you must be well-prepared to face the truth that the property value depends on the market condition. While the value can appreciate during a boom period, it also can depreciate during the busting period.
In addition, you have less flexibility to move after buying a home. It can be one of the reasons that hold you back from choosing a new job in another town or migrating to another country for the sake of your children’s education. Besides, the maintenance costs of a house can be a pain in the neck sometimes.
However, there are always things worth our sacrifices. There’s nothing better than owning a home. If you are ready for a house purchase, it’s time to know the dos and dont’s when applying a housing loan.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.