Dave Ramsey says these are the 3 biggest drawbacks of owning your own home

Image Source: Getty Images

Thinking of buying a home? Be aware of these drawbacks.

Key Point

• Buying a home is great for your life and your economy.
• However, owning a home also has its drawbacks.
• You lose the flexibility of renting, it costs more, and you take all responsibility for ownership.

If you’re excited about buying a home, you’ve probably thought about all the benefits of owning one. And there are many. Of course, you can also personalize your space. Mortgage payments also help build equity and take ownership of assets.

But while owning definitely has its advantages, it also has its disadvantages. You should also be aware of these. In fact, financial expert Dave Ramsey outlines his three major downsides to owning your own location to consider before making an offer.

1. Poor flexibility

The first big downside of homeownership, Ramsey points out, is that you take on far more responsibility when you buy than when you rent. And the responsibilities you carry can make it more difficult to move permanently or travel temporarily for an extended period of time.

“Want to go to Southeast Asia for six months on a whim? Leaving home isn’t as easy as canceling your lease, packing your backpack and getting a one-way ticket to a place who knows how.” Ramsey warned… “It’s the same with work-related moves. ”

Ramsey is right that this reduced flexibility is a big downside to home ownership. Selling a home takes time and money, and it’s impossible to predict exactly when a buyer will be found. So unless you commit to staying in the property for a few years, you should absolutely stick to renting.

2. More expenses

As a homeowner, you have many expenses that renters don’t. Also, some of the bills that need to be paid are much higher than they used to be.

“Remember how less renters insurance costs? We don’t want to break it for you, but homeowners insurance costs much more.” Ramsey Solutions read blogs. “Combine that with potential flood policies, higher Homeowners Association (HOA) fees, property taxes and utility bills, and you’ll end up with more monthly spending.”

Again, Ramsey is spot on. However, the important thing to remember here is that part of your monthly payment goes towards taking ownership of your home. So you have to pay more, but you end up showing something for it – this is not the case with renting.

3. YOU ARE ALL RESPONSIBLE FOR OWNERSHIP

Finally, the third big drawback Ramsey points out is that you have to be “your own landlord” and you don’t have anyone else to turn to to fix any problems that arise in your home. You are responsible for arranging and paying for the repair.

“A leaky roof can be a complete crisis that forces you to use up your savings to buy a new roof. If you’re renting, a leaky roof simply puts the bucket down. You can fix it with just one thing, don’t let it leak until the landlord fixes it,” said Ramsey.

You need to save your home repair budget and plan for this so you don’t go into debt or face financial disaster when things go wrong.

If you’re not ready for higher expenses, more responsibilities, and the commitment to stay in one place, buying a home is definitely not the right choice for you, so be sure to consider these major cons. I have.