Inasmuch as there are numerous benefits to homeownership, there may be some costs that many potential buyers don't really consider as they race against an imaginary clock of materialistic gain.

First, even though many claim it to be an asset, the home you live in technically isn't, as it costs you to maintain it, mortgage payments, maintenance, etc.), and it doesn't produce new income. But depending on how you manage your home, you may have a wealth-holding vehicle that can fund your future (see "Benefits of Homeownership"). Building enough equity for such endeavors takes a great deal of time, and holding on to your home through the ups and downs of your local real estate market.

However, there may be no ups. Your property value is subject to local market fluctuations. Additionally, the real estate market overall can be affected by trends in lending and interest rates, political events, and economic changes. So there is no guarantee that your property will increase in value. In fact, it may decrease in value altogether.

You may decide that you need to sell your home for any number of reasons---new job opportunities in another city or state, a need to be closer to friends or family, or even financial concerns. You may just want to "cash out" on your investment.

But real property lacks liquidity, so you may not be able to free yourself of the encumbrances of ownership as quickly as you would wish. Local market fluctuations may have an effect on your ability to attain a buyer. Even if you do find a buyer quickly, escrow may extend the length of your sale.

Often, excited homebuyers only consider the mortgage payment, and whether that alone fits into their current financial circumstances. But they may fail to account for homeowners insurance, property taxes, and regular or emergency maintenance costs of their home, and the toll it may take on their income.

You do have a place of your own, and there is no property manager or landlord to answer to once you move into your first home. But the new landlord is YOU---you pay all the monthly costs associated with the property. Should appliances, fixtures, or even tiles in the bathroom break, you will pay to replace and repair them.

This may be enough for mobile consumers who may have enough cash, credit, and connections to real estate professionals to stay out of owning a home. If this might be you, there are other options for wealth-building or investment without the constraints of property ownership (see www.budgeting-help.com for articles on introductory investment strategies).

References:

Neighbor Works America. Realizing The American Dream

Neighbor Works America. Realizing The American Dream

Freddie Mac. Don't Borrow Trouble

Freddie Mac. Buying and Owning a Home