Homeownership is considered a sense of not only pride but also freedom. Homeownership and renting cannot be matched. A person who owns their own home is not bound to the landlord’s or landlady’s rules, and the monthly rental payments are equivalent to building equity.
Homeownership is considered the first step towards creating long-term wealth. You would not trade anything for your stake in raking as many millions as possible with this in mind. We had some tips from Tom Collins to understand the advantages and disadvantages attached to homeownership and things you should know about an all-electric home.
Advantages of Owning a Home
- Homeownership gives you a sense of freedom. The house is yours. You can do anything with it, provided you adhere to the zoning and building regulations of the area you have chosen to live.
- Homeownership earns you equity. The equity earned is in two ways. First, the monthly payment towards the mortgage acquired comes back to you in the form of equity. You could never earn the equity if you were renting a house. Second, the monthly mortgage payment partially goes to refresh your loan principal, earning you equity.
- Your home is an asset that, in case you choose to resell at a higher price than you bought it, you earn profit which in some cases is tax-free. You will only qualify for a tax break if you have resided in the house for two years of the five years before resale.
- Homeownership helps you lower your financial burden. You are required to pay property taxes and mortgage interest. All these are deductible, hence easing your entire tax burden.
Disadvantages of Owning a Home
- Homeownership comes with many unexpected costs for repairs and regular maintenance. This is different from renting, where you call the landlord or the management to fix it for you.
- Homeownership presents the risk of losing money in case of resale. The real estate market is known for its time-to-time fluctuations. You may have bought a house during a high season, and when the time for resale comes, the market could be flat or low. This presents you with a lost investment.
- Owning a home gives you a significant financial obligation. If you live in a rented house where you are required to pay a monthly or annual lease, you can easily give short notice when the time to move comes. On the other hand, the entire process of selling can take up to months to complete. Pick and move becomes hard.
Planning for an Electric Home
Learning the pros and cons of homeownership is considered the first step when planning to own a home. Planning for a home is an ordeal that needs to be crafted thoughtfully before commencing.
There has been an increase in electric homeownership recently. More and more people prefer living in an all-electric house hence the demand has also increased. An electric home is defined as a house where all the appliances are electrically run. Cooking, heating, air conditioning, and all other equipment in the house are electrically run.
While the considerations do not differ a lot, there are additional or extractions that one needs to make if one’s dream is owning an electric home. There are things that you should know on your journey to owning an electric home. These include:
The main aim attached to homeownership is saving on cost and multiplying your savings. Previously, it was cheaper to use gas for cooking, heating the house during winter, and boiling water. However, the trend has shifted to using electric appliances due to the recent improvement of their efficiency and an increase in gas prices. It is now not only environmentally friendly to run an electric house but also cheap. The modern, efficient electric appliances will convert to reduced energy bills. As you move to an electric home, consider acquiring a reverse-cycle air conditioner, an electric oven, and a modern electric induction cooktop.
The primary key to achieving a cost-friendly electric homeownership journey is budgeting. It is hard to do all once change to your home appliances. You need to take one step at a time. Know the cost of the modern electric appliance you want, budget for it, come up with a savings plan, and then buy it. You can do this for all items until you finally achieve an all-electric home.
- The motive for achieving an electric home
Many people have different motives for owning an all-electric home. The motives range from financial, environmental, technological, efficiency, or a combination. No matter your motive of shifting to an electric home, you should ensure that the cost is lowered and the environmental impact is significantly reduced.
- Policies in your area
It is essential to consider the regulations set out in building energy-efficient standards. The slow adoption of the standards in many states has seen a higher cost of electric appliances than gas. This consideration will help you to save greatly on any additional costs. While saving on cost, ensure that your home is close to the main electricity supply.
Advantages of an Electric Home Over Gas
- An all-electric home presents a safe home
While gas is prone to explosions and harmful inhalation, the use of electricity has been proven to be safer. All these dangers are eliminated.
- The use of electricity is proven to be environmentally friendly
The use of electricity in your home is considered a clean source of energy provided you buy the power from a source that uses renewable methods of generation.
- There are renewable means of generating electricity
As pointed out earlier, electricity can be generated from renewable sources such as wind, sun, etc.
Disadvantages of an Electric Home Over Gas
- The use of electricity is cost-ineffective
When making a decision, the price is always the biggest consideration. Natural gas has proven to be much cheaper compared to powering your home appliances with electricity.
- The use of electricity is more complicated than natural gas usage
The use of electricity at home is a recent invention. Natural gas has been used in many homes for the longest time now. It is hence easier for all the home occupants to use gas.
- Electricity cannot be stored
The biggest con attached to the use of electricity is the fact that you cannot store it. In case of a power outage, it means that you will have nothing to heat water, cook, and cool your home. Gas, on the other hand, can be stored for more prolonged use.