Buying or Renting
Everyone at some point and time in their lives has the dream of owning their own home. Owning your own home can become a reality with the right plan in place and proper financing. What you need to decide is it really what you want in the long run. Decide if you can afford the financial aspects of home ownership before you start mentally decorating one. Let me break it down in sections for you.
Buying a Home:
First off, can you afford the monthly mortgage payments? There are online mortgage calculators to help you figure it out. When buying a home you must save for a down payment, earnest money & closing costs. I would start saving extra for those little things that happen when you buy a home, such as maintenance and repairs. What about surprise costs like a hot water heater needs replaced or central heat/air needs work, trust me it happens.
When buying a home be aware that you will need to pay for homeowners insurance, property taxes, flood or hazard insurance, and any renovations, it all comes down to you. Some insurance premiums can go from the low $700’s to over $2000 a year depends on the home, and the insurance company you choose. Just like to add that you need insurance in place before signing papers during closing. Want to repaint or maybe do some outdoor upgrades, then your going to be the one who has to pay for it, the cost is on you.
Most of the time renting requires a security deposit often renters insurance, first and last months rent. There are often fees for pets and parking if you rent from a apartment complex. The average rent can be any where from $900 to way over $1500 depending on where your renting. One thing to keep in mind is that if something needs repaired or fixed the landlord is the one who in most cases foots the bill. Renting does give you the freedom of not having to maintain and repair a home, but still having to pay utilities and other personal bills. Going from a apartment to a home will also cause a rise in utilities, it costs more to heat/cool a larger home.
With any thing there are pros and cons. You just need to decide if your ready for a full time financial commitment that comes with home ownership. There is more to owning a home than picking out paint colors or decorating a house. Whatever you decide, buy or rent make sure it’s the best financial decision for you and your family.
Where you live will also be a factor, like the location of the neighborhood. You’ll need to factor in commuting and transportation costs. Some people choose to rent because they need to be flexible in their jobs. With owning a home you commit to a certain neighborhood or a new town for many years.
Whether you decide to rent your home or are in the market to buy, just consider all the financial aspects of both. Decide for you and your family if your ready for that financial leap, or still need to rent in order to save more for your future home.
I hope you like this post. Leave a comment below & let me know what you think.
Here is a free checklist to use. Free Checklist