So, you’re thinking of becoming a homeowner! This is an exciting, as well as a stressful time in your life. Buying a home, after all, is potentially the biggest financial decision that you will ever make. If you are currently renting your home, it can be a tough decision to weigh out: should one rent, or make the jump to homeownership? There are definite advantages to each, along with a list of cons that you should consider. Let’s talk about both options.
At first glance, it might seem like renting has its advantages. Rent is almost always cheaper than a mortgage payment. Being a renter is usually cheaper as well - if an appliance breaks or something else goes wrong in your apartment, it’s a simple matter of calling the landlord to get it fixed, and with no cost to you. Homeowners are responsible for the care and maintenance of their home, from cutting the grass to replacing a malfunctioning air conditioning unit. Renting leaves you with far fewer responsibilities. You are also less tied down. Rental agreements are normally signed for 12-month terms, leaving you free to pack up and go somewhere else if you feel like it or if you dislike something about where you are staying.
But, when you lay it all out on paper, buying a home offers greater advantages. When you buy your home, you have greater privacy, just for one thing. There are tax benefits to owning a home as well - often the interest you pay on your mortgage can be written off on your annual taxes. Owning can be seen as an investment in your personal wealth as well, since, most of the time, houses appreciate over time. (Of course, if the Great Recession taught us anything, it’s that this is not true 100% of the time.) Additionally, as you pay off the principal amount on your mortgage, you will build equity. Ownership makes you part of your community, and there is usually greater pride in ownership, which encourages you to want to make your home better and better on an ongoing basis. While it is true that owning a home “ties you down,” so to speak, it also requires you to make long-term plans and an investment in your future which, when chosen well, can enhance your quality of life and give long-term stability to your family.
If you are ready to make the jump to homeownership, get in touch with a qualified real estate agent today to learn more about your options.
