Thinking about making the investment and buying a home? There’s more factors than payment, and with any situation, there are both pros and cons:
When it comes to home ownership, owning your own home allows you to have a greater deal of privacy. Renting in an apartment complex can leave you with a larger number of neighbors in closer quarters and can give you the sense of always being around people. Owning a home in a neighborhood setting gives you more personal space and privacy with more land and an often segmented property.
Owning a property gives you the right (with respect to your town’s zoning laws) to make renovations to your property. Whether this means adding to your lawn or making changes to the interior of your home, you are able to go about making renovations without having to ask permission from the landlord (because, well, you are the new landlord).
Any major purchase is an investment. For many people, buying a home will be the biggest investment they make in their lives. If you take the proper care of your home and make necessary revisions and renovations to stay up to date with technology and trends, your house will grow in value (if all is well with the economy/housing market). If you go to sell, then you may be able to make more money than what you initially bought the home for, and voila – investment = success.
Buying and owning a home comes with some convenient tax exemptions. Paying for a home will be a pretty lofty financial responsibility, but the tax code allows you some homestead tax exemption. It is important to apply for these tax exemptions, and you might be able to save yourself a fairly large sum of money.
In a perfect world everyone would have enough money to pay for everything in cash up front. However, that’s pretty rare, especially when it comes to buying a home. Regardless of the size or price of your home, there’s always going to be some form of down payment, and having this money can take years of saving with a stable income.
Long term financial commitment
Paying off a home, depending on the size of your loan, can take quite some time. The average loan term (time set to pay off your loan completely) is 25 years. This is only the average and there are shorter terms available, but that would require a significantly higher monthly payment.
Unlike renting where the landlord takes care of all maintenance work, the homeowner is responsible for all maintenance on their home. Maintenance costs can pile up quickly when it comes to replacing broken appliances or having to hire individuals to fix housing systems such as electric and plumbing.
When you buy a home, there is a certain assumption that you plan on staying for a while. If you weren’t planning on staying for longer than a year or two, it would have probably made more sense to rent. When you buy, there is less room for flexibility in relocation, because you are no longer on a time-allotted lease.
Moving requires a careful thought process, and it’s impotent to not only consider the logistics of your move, but also the amount of commitment you are prepared to make.