Buying a house: Advantages/Disadvantages

What are the Advantages of buying a house?

Buying your own house gives a person a greater sense of independence and increased self-esteem as they can take pride in something that they own.

You may own the property so can make improvements or build extensions to suit you or your family’s needs.

Any improvements made are likely to increase the value of the property such as a fitted kitchen or garage and so this will add money to the value of the house when you go to sell it on.

You could generate extra income with your house as it is possible to rent out rooms you are not using or your driveway, if you live in the city. You could also turn your house into a business to help support your family for example, a B&B.

Selling your house for more than what you bought it for could mean a large profit, which could go towards the deposit of your next house.

What are the Disadvantages of buying a house?

Many people do not have the money to buy a house so they need to take out a mortgage to buy their house. This means they are repaying a debt for a long period of time, usually 25 years.

Mortgage repayment rates can be high and so you end up paying back a lot more money than you borrowed.

It can be difficult making the mortgage repayments every month. Failing to keep up with mortgage repayments may mean losing your house/home and may lead to further consequences, such as bankruptcy/arguments with family members.

The value of your house can decrease over time so if you tried to resell your house, you could lose money (as you are selling it for a lower price than you bought it). This is referred to as 'negative equity'

To keep the property up to date/pay unexpected bills you need to budget your money carefully to make sure you can pay for such emergencies/bills/improvements to the house.

QUESTIONS YOU COULD BE ASKED:

Discuss the advantages of buying a home to try and bring up a family. (6marks)

Owning a home provides a stable environment for children, eliminating uncertainties like sudden rent increases or frequent moves. This stability contributes to a sense of security and well-being for the entire family.

A home is a significant financial investment. Over time, the property's value can appreciate, providing financial security and potential wealth accumulation.

Homeownership allows families to personalise their living space. This can include renovations and decorating, creating a comfortable environment that reflects the family's lifestyle.

You should also read:

Renting a house: Advantages/Disadvantages