Is Homeownership Right for You?

July 25, 2013

Is Homeownership Right for You?

Homeownership is a pretty traditional life goal. Purchasing property, whether it be a condo or house, has become one of those milestones many of us take for granted. There are many great reasons for wanting to own a home – like being part of a community or raising a family – but homeownership isn’t for everyone. There are many things to considering when deciding whether or not it’s for you, here are a few:

Think short-term

In recent years homeownership has become more attainable for twenty-somethings. That’s great – however, your 20’s are still very much a decade of discovery. It’s when we’re still mapping our career paths and figuring out who we are as people. Having the money for a down payment doesn’t necessarily mean it’s time to buy. Are you a rolling stone? Do you battle with wanderlust? If you’re still considering going abroad to teach English, or backpacking across Europe for an extended period of time (regardless of your age), you may want to hold off on buying property just yet.

Think long-term

No one is asking you to predict the future but you should think about where you see yourself in the next 10, 20 years. Do you hope to have children? If so, how many and how soon? The answers to these questions may have you reexamining your plan to buy that shoebox-sized condo in the club district. Owning a home isn’t a life sentence, but keep in mind that short-term buying and selling costs could exceed financial gain.

Research costs

Saving up for a down payment is the easy part, especially considering 5% is all you need in some cases. But what about all of the other costs associated with owning a home? Have you factored in maintenance fees, property taxes, and home insurance? What about the possibility of higher utility costs and repairs? And let’s be honest, home furnishings will cost a pretty penny too, unless you plan on living in an empty space. Some people will balk at homeownership after realizing the financial investment is much more than they thought initially. Do your research and then decide whether or not it’s worth it.

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This newsletter was written, designed, and produced by Lionel Khoury, for the benefit of Lionel Khoury, Investment Funds Advisor with Investia ECGI., a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Fact sheet or prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.