Is Owning a Home Right for Me?

Depending on your goals and your current financial situation, owning a home may not be the right decision to make. Find out if owning a home is right for you with help from a financial adviser with this free video on real estate.

Video Transcript

This is Morgan. He's married. he just had a new baby and he's ready to buy his first home. This is A Home of Your Own. Whether or not to rent or buy a home is a personal choice. I have a wife, a new baby and want to provide them with a home. After my baby was born, home ownership and the stability that comes with it became a lot more important to me. And children thrive on security and that's what I wanted to give him. We had been living in an apartment for several years now. We weren't really sure where we wanted to live and we didn't know how long we were going to stay, so renting was the right choice at the time. Still, the experience led me to my first housing epiphany. Rent can go up. So, advantage number one, owning a house, if you lock into a fixed rate loan at some point along the line, is that you can fix your largest housing cost, your mortgage, for a long period of time. But it's not just about money. It's also about having a place of our own. We can put up a swing set in the backyard or convert the basement into a family room. We can make whatever changes our family needs and not having to worry about having to leave because the rent increases or the landlord wants to move in. Some additional tax and financial planning led me to epiphany number two. As a homeowner, many of my housing costs, such as property tax and mortgage interest paid throughout the year, are tax deductible. All of these factors translate to security, meaning I'll always have a place to live as long as I'm able to continue paying for it. As we've seen in the last few years, housing prices do not always go up, at least not over the short term. But if you are in a home for a long period of time, you're likely to fair well. Owning a home then, is a long term investment, not something you can always get in and out of for a quick profit. That's why despite strong financial and personal incentives to own a house, there are plenty of good reasons to rent. If you want to e free to move with the best career opportunities or try out different neighborhoods to decide what you like, renting makes a lot of sense. You can pick up and move at the end of every lease. If your income isn't fixed or you aren't sure you can comfortably afford the cost of maintenance and repairs that come with a home, renting could be less stressful. My wife and I have reached the point in our careers where job security and income are stable. We know where we want to live, and that we want to settle down in a place of our own. Where we're at in our lives now, buying a home just makes the most sense.

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