Buying a home of your own is a dream for everyone. Renting an apartment may seem a more
convenient and cheaper option compared to buying a house of your own but at some point in
our life it is important to stop and figure out whether we want to keep renting or whether it’s
time to buy a house of our own. It’s not easy to find the answer to this question. It may vary
from individual to individual and we need to look at several things to help make the decision.
One of the first and most important question that you need to answer is that are you ready to
buy a house. Now being ready to buy a house would mean being financially and emotionally
prepared to be a homeowner. When you are saving up money to pay for the down payment of
a home, you can have a look at your savings and determine whether you’re ready to be a home
owner or not. There are times when it makes more sense to keep on renting and you should be
able to decide whether you are ready to be a homeowner.
In order to decide whether you are ready to buy a house it is important you know some of the
pros and cons of home ownership. Here are a few pros to home ownership:
1. Attractive tax breaks and tax advantages
There are several different tax benefits that home
owners (especially first-time home owners) enjoy. This makes buying a house a more lucrative
option compared to renting one.
2) Building equity -
When you are making mortgage payments you not only have a house of our
own but also building equity on it with every payment. This allows you to avail an equity loan in
the future if you need it.
3) Sense of freedom and accomplishment
When you have your home you can make any changes to it without being restricted by tenant
contracts. You can remodel it, renovate it and decorate it however you want which you can
never do in a rented apartment.
You also experience a sense of accomplishment when you buy a house. It is certainly one of the
most important financial decisions you take in your life.
But like all other things buying a home also has its challenging aspects. Here are the cons of
buying a home:
1) Dealing with bad neighbors
When you stay in a rented apartment you have the freedom to move out if you find your
neighbors or surroundings are not good. This is not possible when you buy your own house.
So you should do thorough research on the neighborhood before you buy a house. Of course
obnoxious neighbors that may move in the neighborhood in the future, but you should always
check the current neighborhood before you buy a house to avoid disappointment in the future.
Maintenance
When you buy a house you become responsible for all maintenance that may be required for
the house in the future. When you are renting, you can just call the landlord and have him fix
things for you. This is not possible when you buy a house. So before you buy a house make sure
you are ready to take care of all maintenance expenses that will come up over a period of time.
Buying a home is a big decision to make. A lot of planning and preparing is needed like:
Things To Consider
-Check your Credit Score and improve or maintain it high.
-Shop around for good rates usually credit unions have better rates
-Determine the area / location
-How much money can you spend on your mortgage?
-Looking to build or buy existing home?
-If buying an existing home, calculate the repair costs
-Locate a realtor who knows the area and can help make educated decisions.