Homeownership can be rewarding.
But it’s a commitment that requires time and money, and it’s not always the right fit for everyone.
Dupaco Community Credit Union’s Real Estate department recently presented a home buying seminar, laying out the pros and cons of homeownership. The well-attended seminar – titled “Are You Ready?” – will be offered again in the near future.
Jeann Digman, Dupaco’s vice president of mortgage lending, says the seminar, which aims to better prepare prospective homebuyers, is a perfect fit for Dupaco and its mission.
“We don’t want to put anybody in a situation where down the road they’re set up to fail,” Digman says. “We want to be their lifetime financial home and put them in a home they can afford.”
Digman lays out six differences between homeownership and renting:
- Equity: Unlike renting, homeownership affords you the opportunity to build equity in your home.
- Maintenance: When you own a home, all of the maintenance falls on you (and your pocketbook). “If you’re going to purchase a home, you want to make sure you don’t use up every last dollar. You still need to have funds in reserve if your furnace goes out,” Digman says. When you rent, however, these are the landlord’s responsibilities.
- Stability: Typically, your mortgage payments will remain stable. You have less control over your rent payments.
- Temporary home: If you plan to live somewhere for a short period of time, renting typically trumps homeownership to avoid getting stuck with a house that’s difficult to sell.
- Tax advantages: Homeownership offers tax advantages that renting does not.
- Utilities: Utility bills are typically higher in a house compared to a smaller apartment.
Not sure whether homeownership is the right financial step for you? Contact a Dupaco mortgage lender at (563) 557-7600 / 800-373-7600, ext. 204.
By Emily Kittle