After, well over a decade, as a Real Estate Licensed Salesperson, in the State of New York, I have worked with, both, existing homeowners, wanting to sell their homes, as well as qualified, potential home buyers. While many consider home ownership, before taking the leap, and purchasing, what, for most, will be their single – biggest, financial asset, it makes sense, to take the time, and make a concerted effort, to fully consider some of the advantages, and what, might make sense, for you, and your needs! With that in mind, this article will attempt to consider, examine, review, and discuss, what I call, the 5 P’s of owning a home, of your own.
1. Paying self, instead of landlord: Whether one owns his house, or rents from someone else, it’s important to understand and realize, we will have monthly costs and expenses. It’s merely determining, who you want to pay, your landlord, or yourself? When you own, your monthly payments, go towards a combination of principal, interest, and, what is known, as escrow (which includes, real estate taxes, insurance payments, etc). The part, which goes towards principal, builds equity (value), and, since, historically, over – time, real estate values grow, at least with the inflation rate, as well as supply – and – demand, you will be paying, yourself, instead of your landlord. Although ownership, also means, you will be responsible for certain costs, including repairs, renovations, etc, while, when you rent, your landlord is responsible for most of these, most analyses indicate, the equity/ value of this asset, will enhance your overall financial worth.
2. Pride of ownership: Most people feel pride in living in their residence, and, thus, this pride of ownership, is a non – financial aspect, for potential purchasers, to consider, and evaluate, as part of their decision – making, in whether it’s the right move, for them, personally!
3. Particular needs: Do you have any particular, individual, specific needs, which a specific house, might serve, and enhance? Is it a matter of location (specific neighborhood/ area), actual property (size, or specific functions), number of rooms, or specific features, which will, make you happy, and proud, to live somewhere?
4. Practical/ pragmatic: If it makes sense, financially, and make you happier, owning may be, both a practical, as well as, pragmatic course of action!
5. Priorities: Each of us have our own priorities, so, when you buy, a house, focus on what you desire, and makes happy, and meets your personal needs and requirements, instead of, merely, Keeps – up – with – the – Joneses!
Buying a house, and participating, in the so – called, American Dream, should be approached, thoroughly, and carefully. Will you continue to pay your landlord, every month, or buy, and pay yourself, instead?