Pros and Cons of Owning a Home For First Time Home Buyers

Pros vs Cons of Owning Your Home

Thinking about buying a home in Fort Collins, Loveland, Windsor, Severance, or anywhere else in Larimer or Weld counties?  Whether you’ve never owned a home before or it’s been a while since you’ve purchased, Let’s talk about the Pros and Cons.  

What’s up everyone! This is Juliana Tyo, Your NoCo Home Girl with RE/MAX Alliance. So when you’re thinking of buying a home in Fort Collins or surrounding towns, Let’s review some of the Pros first. 

1. Your wealth can increase as you build equity in your home.  Take a look at this graph in my video. If you were to buy a $300,000 home in January of 2021, The Home Price Expectation Survey predicts an increase in household wealth of over $50,000 in just 5 years. Of course, this is market dependent. So check this graph out – this shows the year over year home equity gains per state, according to Core Logic. In the United States, the overall average equity gains over the last year was $33,400. In fact, a homeowner’s wealth is 40x more than a renter’s wealth.
    
2. You gain tax advantages.  Mortgage interest is tax deductible as per IRS code, you can speak to your accountant for more specific information and numbers.  This can be a significant tax advantage when owning a home.
    
3. According to Corelogic rents are going up and mortgages are going down.
    
4. You can stabilize your payments.  Monthly payments are relatively steady if your loan has a fixed interest rate, while your landlord can increase your rent.
    
5. You’ll have a secure place for your family to live and grow.  You can also decorate and expand your home in a way that you like to create your dream home. 
    
6. Gain a sense of community.  Homeowners often are more involved in the well-being of their communities; many homeowners work together to better the schools and lessen the crime rates. 

Now, I have to be honest here, I could go on and on about the benefits, but let’s think about the Cons when purchasing a home in Fort Collins, Colorado Larimer County or Weld County.

1. You need to consider maintenance costs.  It takes work and money to keep a home in good condition.  It’s sorta like your car, if you don’t change the oil, the car can blow up. 
    
2. It can tie up your cash.  Selling a house may not be possible during the first few years of ownership; moving is more difficult and complicated and you may not have as much flexibility in choosing a new job location.
    
3. Your home can fluctuate in value.  There is no guarantee that your home will increase in value. In fact, it could decrease in value.
    
4. Obligates your finances.  When you buy a home, you are obligated to make that monthly payment no matter what, so it’s always a good idea to have a bit of a nest egg as a backup for a rainy day. 

So let’s be real, buying a home can seem scary.  Give me a call/text me at 970-227-0689 or send me an e-mail at [email protected].  I’ll help take out all the worries and pressure so that you can make an informed decision. This is Juliana Tyo, Your NoCo Home Girl with RE/MAX Alliance, and remember – your home, your adventure!