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Challenges of Homeownership

Despite its many attractions, homeownership is not for everybody. For one thing, buying a home is a complex, time-consuming, and costly process that brings with it sometimes unwelcome responsibility.

High cost of homeownership…
Buying a house can put considerable strain on a family’s finances. Even if your mortgage payments are less than you paid previously in rent, you must also pay property taxes, homeowner’s insurance, utilities, and upkeep expenses.

Possibility of foreclosure…
Foreclosure is the sale of a mortgaged property (your home) by the lender when the borrower fails to make monthly mortgage payments on a timely basis or otherwise defaults on the mortgage. A mortgage represents a large financial obligation extending over a long period of time. Financial institutions can foreclose when borrowers fail to keep up with their payments. This can result not only in the loss of your home but also in the loss of your investment and good credit rating.

Decreased mobility…
Homeowners also have less mobility than renters. A homebuyer cannot move after simply giving the required notice to the landlord. If you anticipate being transferred to a new job location within the next year or two, this might not be the ideal time to buy a house.

Repairs and maintenance…
Many people shy away from buying a house because they don’t want the responsibility of maintenance (mowing the lawn, taking care of needed repairs, etc.). Condominiums are popular for this reason in that it provides you with homeownership without the repair and maintenance responsibilities.