Chapter One: Buy or Rent?
Buying a home is among the biggest decisions that most of us have to make in life. It may be both emotional and of financial overwhelming but it is worth taking. For a first time home owner, it is important to prepare and learn about the process of buying a home. There are differences between the process of buying a home and that of renting a home. This may make the process of buying a home intimidating to some. Before buying it is important to consider the following three questions:
Are you financially ready to afford a home?
Are you ready for the responsibilities that come with home ownership?
Do you have the time and resources to look after your home? This is where Maureen Martin will be able to help you.
You should also consider the pros and cons of both buying and renting a home in the light of your prevailing circumstances. This will help you make the best decision regarding your situation as buying a home is not a must for everyone. Use the following advantages and disadvantages of buying a home to guide you.
Why Buy a Home?
Deciding to buy a home is one of the most important decisions you will ever have to make. Owning a home is not just an important investment but also comes with numerous other benefits and responsibilities too. The following are some of the major advantages for buying a home.
A home just like many other real estate properties usually appreciates in value over the years. Although not guaranteed a home in a prime location can double in value of a number of years and you may earn a profit if you decide to sell the house. You can also you the increased value of the house when borrowing money for other uses.
Owning a home guarantees Youwin you tax advantages veniam that renting a house perform would not. Usually mortgage interest and property taxes comes are deducted from your income taxes and thus reducing your tax burden considerably.
Fixed housing expenses
While rent не for a home may be increased annually, mortgage loans for buying homes have a fixed installments. This is important in helping you plan your finances as you are sure of what you will spend in the next year.
A home can be a sound investment
When you buy a home using a mortgage, the mortgage payments accumulate equity which is not the case when you rent the same house. This gives you financial security as opposed to renting a home.
Gives you the power to manage your environment
Owning a home grants you the opportunity to change the way your home environment functions and looks like. This is www.chicagobearsjerseyspop.com largely because you are responsible for the maintenance and repair of the home and can make any changes you deem fit. This is not possible when you rent a home since the environment around your home is managed by the landlord.
Why Not Buy?
Buying a home may not be a priority for you at a given time. This may be because you financial situation is not sound for home ownership or you may have other priorities you want to achieve fast before considering buying a home. This makes renting a home as the only other option you have. The following are some of the important disadvantages of buying a home especially when you are not ready.
The process of buying a home can be costly and complex and time consuming
Buying a home brings with it a lot of responsibilities and expenses such as repair and maintenance costs, home owner’s insurance, utilities and property taxes. All this can cause financial difficulties especially Gaga if you were not ready for them.
Buying a home may be difficult if your credit ratings are not favorable to lenders.