7. Risk management
Many experts will advise people that home ownership is a great investment, but there are times when it is best to sit back and watch rather than jumping into something that could turn against you. Buying a home is a risk partly because the value of your home is not something you can control. Buying a $200,000 house does not mean you will always have a $200,000 house. The real estate market fluctuates, and that can bring the value of your home down well below the price you paid. This is often referred to as being “underwater” and it’s easy to see why, because it probably makes a lot of people feel like they are drowning!