What are the Advantages and Disadvantages of Owning a House?

The important question for the family is whether to own to take a house on rent. Housing being one of the expensive investments, a careful consideration must be given to various aspects of it.

The family’s most desirous goal is to have a house of its own. Throughout his lifetime, an individual saves with a dream that one day he shall be the owner of the house. He makes sacrifices to fulfill his desire of a home. But he must think about the advantages and disadvantages of owning and renting a house, before taking a final decision.

Advantages of Owning a House

(a) Home owner is the master of his own dwelling. He does not have the fear of being ordered to vacate and the burden of day-to-day increase in the rent.

(b) Home ownership is a pride, a security.

(c) He can make the changes in the house according to his requirement and choice. The money spent upon improvements and additions, increases to the value of his property.

(d) It is permanent asset whose value increases day by day.

(e) He can decorate, were-model, improve or fix as and when he desires.

(f) Home owners can avail the credit without difficulty.

(g) He can purchase appropriate furniture suited to the dimensions of the rooms and space provided, as he will never be ordered out.

(h) Home owners have the advantage of having long time association, friendships and neighbours to last for longer period of years and will help in times of distress and happiness.

(i) In case of a rented house, one has to depend upon the mercy of land lord whereas a house owner does not face such inconvenience.

Disadvantages of Home Ownerships

(a) It costs more to own a house than to rent it.

(b) One has to curb current expenditures and sacrifice current pleasures just to own a house.

(c) After having a house, the family savings are depleted for certain times. If any emergency arises there is no ready money to spend.

(d) If property value declines, the investment made in a house is a waste for the amount spent. But this is a rare possibility.

(e) House ownership binds the family to a given location.

(f) The home owner has to face problems with neighbours in case his relations with them are strained.

(g) Home owners have to pay taxes: house tax, water tax and other taxes relating to property.

(h) The maintenance of the house is another burden for him. If he does not make the required repairs, the property depreciates. The cost of repairs is also increasing day by day.

In spite of above disadvantages, the satisfaction of owning a house has deeper and more powerful feeling for the owner. On the other, not all home ownerships prove to be full of satisfaction.