Summary of Home Ownership

Home ownership has its pitfalls. You will have that mortgage for a long time—unless you need to move, in which case you may have trouble selling quickly at a good price. Indeed, if you build a new home and move soon after, you could actually lose money. Finally, you will not be able to count on the landlord anymore to make repairs, mow lawns, and paint siding.

Still, for most people, home ownership is part of the American dream. Not only do you get to live in your own "castle," you own an investment that can grow in value, helping build your wealth and providing a source of capital.

But be sure you understand the full costs of buying a home, and the many factors that can influence its value, before you pick up the real estate ads.