Owning your own property is part of the American dream and there are several reasons why you would want to own your own property. From the tax benefits to the increase in value, there are many reasons why home ownership is better than leasing.
Even in today’s market, home ownership program is a great idea. There are many good reasons of homeownership including tax write offs, increase in property value, owning an investment and a place to call your own.
Home ownership is the second biggest financial commitment most people ever make – the biggest being children. Home ownership program has great benefits as well as heavy responsibilities.
You will probably look at and consider many homes before you make an offer on one. But even before you begin house hunting, it helps to have in mind the type of home you want and the features that are most important to you. Here are the four key types of benefits of homeownership to consider:
THE TYPES OF HOME OWNERSHIP
- Single family:
It is the full type of home ownership. As the proprietor of a single-family home, you are completely answerable for reimbursing the loan, assets taxes, and any other bearing expenditure, including all repairs and renovation costs.
As the owner of a house, you own your living housings (apartment, town home) in the similar manner that a single-family proprietor does. You also own a part of the common space, such as parking areas, gardens and community facilities. You pay a regular repairs fee for the mutual expenditures. The owners’ association, which you belong to, makes conclusions about how the apartments will run.
As the owner of a co-op, you buy a portion or an amount of stocks in the corporation that maintains and manages the building your flat is in and the plot it is on. If you took out a loan for the apartment, you are answerable for paying it off. You also pay a scheduled maintenance fee for your portion of co-op expenses, maintenances, and taxes. You must, however, be permitted by the co-op board before you can buy.
Apartment house and co-ops may be less costly than single-family homes, though association fees can drive up the rate. Also, these dwellings generally do not appreciate in real estate value as quickly as single-family homes do.
When homeowners are looking for the right home insurance policies, your first question will probably be how much is home ownership costs a month. This depends upon benefits of homeownership, and some of these factors you will be able to control, depending on the type of house that you buy.
The major part of the home ownership costs you will have to pay for home insurance per month will depend on the value of your home. This is the most significant factor, so you will want to remember that when you are looking for the right home. The type of coverage you get will also determine price. If you need replacement insurance along with whole home insurance, you will obviously pay more for the extra coverage. But you can get insurance coverage that will only cost you as much as your mortgage is worth.
There are some elements of home insurance that you can control in terms of price. It all depends on what type of house that you want to buy. Location is the first concern. If you are located in a flood plain, you will be required to purchase flood insurance. Depending on the area, flood insurance can be expensive. If you want to save money, stay far away from flood zones. You can also end up paying more if you are living in the city as opposed to the suburbs. The price of your home insurance each month can even be based on your location to the nearest fire hydrant. So when you are buying a home, make sure you pay close attention to some of these factors.
The home itself will also give you an idea of the prices that you will have to pay for basic homeowners insurance. The age of the home and the age of appliances such as the furnace and the water heater all factor into the price of the insurance. The older your home is, the more likely things could go wrong. This will ultimately have an effect on price for insurance. And the type of exterior plays a factor as well. You can choose between brick or regular siding, but insuring a house with a brick exterior will raise your cost a little.