Passion Experience Transparency
Taking the first step towards buying your home can be overwhelming. Before you dive in too deep into the process, it is important to consider several factors. Buying a home will be one of the largest financial investments you make in your life, so you want to be well prepared.
Renting versus Buying
Maybe you are tired of renting. Maybe you’ve had a baby and are outgrowing your current home. Or you may have just started a new job in a new town. No matter the reason, you are considering buying a new home. While it may seem that owning a home is a good idea, it might not necessarily be the case for everyone. The key is to consider all the factors, good and bad, that come with owning a home. Once you compare renting versus owning, then you are ready to make the best decision for your current situation. One of the biggest advantages to owning your own home is the potential savings over renting. If you are renting a home, chances are likely that your rent will increase in the next several months. As the economy keeps changing, so does the housing market. Owning your own home puts savings back in your pocket, and allows you to know exactly how much your mortgage payments are (and allows you to choose various financing options). For example, you can secure a fixed rate that never changes, unlike the rental market. Additionally, for homeowners, the government sometimes offers compensation for home repair, efficiency repairs, etc. which puts money back in your pocket. While the cost of purchasing a home is sometimes more expensive, these types of programs can make things more affordable. And in the long-run, a house simply costs less than a rental. While renting can be useful for some financial situations, owning a home can provide great benefits to you and your financial well-being.
Pride of Ownership
First and foremost, your home is YOURS! When you own something you tend to take better care of it. You have the freedom to decorate and landscape as you wish.
Stable Housing Costs
When you purchase a home with a fixed interest rate mortgage, you don’t have to worry about surprises in your monthly payment. Month after month, you know what your payments are going to be. If you rent, at the end of your lease, your rent could go up or you are asked to vacate!
Equity Build Up
Long term, as you build equity in your home, you may even have a home is that is more valuable than what you paid for it.
When you own a home, you own an asset. After living in a home, you are often rewarded with thousands of dollars of appreciation. Your rent every month goes into the landlord’s pocket and at the end of your tenancy all you get back is your security deposit!
Control your own space
Use a spare bedroom for your own home office. Create a workout area in the garage.You own the home, you make the rules. So, while owning a home can take some work (and money), it is something you are likely to thank yourself for –both years down the road, and after you move in. On the other hand, you may not be ready to own a home: Buying a home can be a complex, time-consuming and costly process. It may bring unwelcome responsibilities such as maintenance and repairs. Owning your own home makes it harder for you to move. If you experience a reduction in income it could create a ﬁnancial hardship. Only you know if you are ready!