Risks:

Appreciation isn’t a guarantee

Though history shows long-term homeowners routinely reap the benefits of appreciation and equity, the housing market can—and has—slipped over the short term. Research the area in which you want to live and make sure any prospective neighborhoods show low crime rates and growing value.

It isn’t cheap

As a general rule, mortgage payments are usually more per month than rent. As an owner, you’ll also be responsible for maintenance and repairs—no more landlord to do that for you.

Menacing mortgage

If for some reason you can’t make your house payments, it spells big-time trouble. Lenders could foreclose on you, meaning you could lose the home and all of the equity accumulated so far. Renters, on the other hand, can usually just downsize to a smaller apartment if they find their monthly rent too much to bear.

Pick up and go?

Not so. Owning a home generally means fewer options when it comes to moving. Depending on the state of the market, it could take quite a while to sell your house. Waiting for escrow to close could prolong the process.

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