Should I Rent or Buy a Home ? To buy or not to buy ? It’s a question so many people struggle with. And, it’s very important to figure out if you truly want to own a home before you’re involved in the home buying process.
To help you decide if you should Rent or Buy, here are some things to consider about buying:
A sound investment:
If you purchase a home you can afford, the payoff can be great. When you make your monthly mortgage payments, you build equity in a place of your own. Home equity is the market value of a homeowner’s unencumbered interest in their real property. That is, the difference between the home’s fair market value and the outstanding balance of all liens on the property. In short, Equity is the difference between the value of the home and your outstanding mortgage. The longer you stay in your home ( the more payments you make ), the more equity you will have. And, unlike most things you buy, a home will almost certainly increase in value over time – which builds even more equity.
A First Step
As you build up your comfort level and equity in your current home in being a homeowner, it can help you make the next step up to a new place.
Satisfaction and security
When deciding if you Should Rent or Buy, remember this Being a homeowner, you can renovate your home any way you like. You don’t have that luxury and flexibility as a renter. Owning a home will also give you a new sense of pride in your surroundings. Your family may also feel strong ties to your community if you are in the same area for a long time.
When budgeting for your home purchase, you’ll have to factor in more than your monthly mortgage payments. Consider things like condo maintenance fees, insurance and repair expenses.
Tying up cash
Chances are, your home will probably increase in value as time goes by, but don’t count on getting a big return quickly. If you need to sell your home during the first few years of home ownership, you could lose money given the various costs involved, such as listing fees, moving fees and possible fees for breaking a mortgage early. If you are not looking to do a quick flip you will want to plan long term when deciding if you should Rent or Buy.
There’s no guarantee your home will increase in value, especially in the short term. Although historically, over the longer term, your home will be increasing value.
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