While the idea of owning a home is exciting and exhilarating, it is also pretty tough on the nerves. A majority of Canadians believe that you can actually realize your deep-rooted dream by owning a home. The feeling of having your personal space where you can enjoy absolute freedom to do whatever you want without any external involvement is very reassuring.

Nevertheless, it is unquestionably true that home ownership can potentially turn out to be your worst decision ever. Therefore, before indulging yourself in the idea of owning a home, take a moment to determine if it is really a good idea.

Higher Upfront Expenses: Owning a house can put a significant strain on your monetary resources. For the first few years, you may have to pay more as a homebuyer than you used to as a renter. Expenses in the form of closing costs and down payment can make you pay a substantial amount of money. In most cases, these hefty expenses are required to be paid even before you obtain the keys of your home. In addition to mortgage payments, expenses for property taxes, utilities, and homeowners insurance cost you a lot. For this reason, most banking institutions recommend you to have a considerable amount saved before initiating the process.

Affects your Flexibility: For instance, you need to move to some other city to accept a better job offer, or your home is not appropriate for your family anymore, or your financial circumstances have changed. Whatever the scenario be, it is not possible for you to move on short notice because of the long-term mortgage conditions. As a matter of fact, the consequences of selling your home can be even more devastating.

Risk of Foreclosure: Foreclosure refers to the repossession of the home due to default mortgage payments. It often occurs when you encounter an unexpected increase in expenses or decrease in income. Generally, unforeseen increase in expenses results from unpredictable medical bills, home repairs, or other personal problems. However, any accident, illness, or loss of job can cause unexpected reduction in income. The impact of foreclosure is much more severe than missing a rent payment.

More Unpredictable Expenses: As a renter, you know your housing expenses beforehand. You do not have to fret about home repairing and maintenance. However, as a home owner, these responsibilities can be expensive as well as time consuming.

The intention of mentioning disadvantages of home ownership is not to discourage prospective homebuyers. Instead, it is to instil some objectivity and stability in you while making a decision to buy a home. You are likely to make a better decision if you are aware of its consequences in advance.