Home buying is the biggest purchase any of us can make and the decision should not be made lightly. Buying a home is a costly, complex and time-consuming process so many opt to renting instead of owning. But if you’re planning to buy a home and have good reasons in mind, do considering the following before you make your decision.
Advantages
You can have a place “you can call your own”, therefore many strive for home ownership especially those thinking about starting a family. You will have more space for the family and you can do to it whatever you please to suit your taste and lifestyle. Owning a home can also be a great investment because houses usually increase in value over time. Plus the monthly mortgage can serve as a type of savings plan. While renters continually pay rent to a landlord without an opportunity to build up equity. The government also offers various tax rebates and deduction for home owners. Another advantage is that when you own a home, your credit rating goes up significantly as well, thus you can get better loans at a lower interest rate for your other future major purchase.
Disadvantages
You can expect to pay more as a home owner than you did as a renter, especially the first few years. Even when your monthly mortgage payment is lower than your rent, but you must pay property taxes, insurance, utilities and upkeep expenses. You’re also liable for any accidents, injuries and maintenance on your property, as well as any damage that is caused to your neighbor’s property if the causes come from you or your property. The mobility will also be decreased, as a home owner you can not move as easily as renters. If you’re expecting a move to a new location within the next year or two, put the home buying on hold for now. Also, remember your home loan needs to be paid on time, if not the lender may sell the mortgaged property. This is called “foreclosure” and can result in your losing your home, your investment and good credit rating.
Tags: real estate buying, first time home buyers, real estate trends, buying a home, mortgage financing
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