I recently saw an article which stated that for homeowners “their houses are like piggy banks.” But if you own your house, an increase in its value doesn’t seem to help you in any real way, since to realize that gain you’d have to sell it. But then you’d have to buy or rent another place to live, which would also cost more. It seems like the only concrete effect of a rising housing market for most homeowners is an increase in their insurance costs. Am I missing something?
In: 1833
Pros:
More equity in house if you need to borrow
More value of house if selling
Some people talk about taking off PMI but it doesn’t work with many mortgages and not something simple.
Cons:
High property tax. This is the biggest downside if you’re not planning to sell.
Higher insurance cost.
I’m on the negative side. Not planning to sell my house soon and the house is costing me more every year.
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