Should You Be Renting Or Buying Your First Home?
You may have doubts in the home buying process if you have rented a property for several years. We will explore the pros and cons of both buying and renting a home in this article to help you finally decide which path to take.
A lot of renters do not even consider having their own house because of all the responsibilities attached to buying and owning a home. Owning a home involves paying for your home's upkeep costs, paying for property taxes, applying for a home insurance and even paying off a mortgage, if you took a loan to purchase a property. All of these responsibilities may overwhelm you at first. You just have to understand basic home buying principles so that you can be at ease with the process.
The first thing you need to do is to list all payments attached to your prospective home. You can usually ask your realtor for information regarding average fees, maintenance costs and taxes. Place all information on a digital spreadsheet so you can compare costs for different homes quickly. Arranging all information you gathered in this way will also give you a precise calculation of a home's total purchase price and the monthly costs you have to pay.
Author Ilyce Glink of '100 Questions Every First-Time Home Buyer Should Ask' explains that buying a home also means you're buying into your local community, because you're responsible for local taxes, trash pickup and other services that may not accompany renting in the same area.
You would also need to research about the tax benefits that come along with owning a home. There are more tax advantages in owning a home than with renting - but the exact benefits depend on one's income and total real estate property tax due per year.
You can estimate your real estate tax benefit by taking into account all your other tax benefits, deductions and current income level. As always, it is better to consult with a financial advisor or an accountant to help you in doing this.
Owning a home is seen as a long-term action. Going through the whole home buying process is just not worth the time, effort and money if you only intend to settle in a particular location for a few months or a couple of years. If you're not yet decided on where to settle in for the long-term, it might be better for you to rent a home on a monthly or yearly basis.
If you don't want to settle in a specific neighborhood, then buying a home might not be for you. If you are seriously considering to buy a home, then you need to decide where to settle in and, if ever, when and where you want to relocate in the future. - 23200
A lot of renters do not even consider having their own house because of all the responsibilities attached to buying and owning a home. Owning a home involves paying for your home's upkeep costs, paying for property taxes, applying for a home insurance and even paying off a mortgage, if you took a loan to purchase a property. All of these responsibilities may overwhelm you at first. You just have to understand basic home buying principles so that you can be at ease with the process.
The first thing you need to do is to list all payments attached to your prospective home. You can usually ask your realtor for information regarding average fees, maintenance costs and taxes. Place all information on a digital spreadsheet so you can compare costs for different homes quickly. Arranging all information you gathered in this way will also give you a precise calculation of a home's total purchase price and the monthly costs you have to pay.
Author Ilyce Glink of '100 Questions Every First-Time Home Buyer Should Ask' explains that buying a home also means you're buying into your local community, because you're responsible for local taxes, trash pickup and other services that may not accompany renting in the same area.
You would also need to research about the tax benefits that come along with owning a home. There are more tax advantages in owning a home than with renting - but the exact benefits depend on one's income and total real estate property tax due per year.
You can estimate your real estate tax benefit by taking into account all your other tax benefits, deductions and current income level. As always, it is better to consult with a financial advisor or an accountant to help you in doing this.
Owning a home is seen as a long-term action. Going through the whole home buying process is just not worth the time, effort and money if you only intend to settle in a particular location for a few months or a couple of years. If you're not yet decided on where to settle in for the long-term, it might be better for you to rent a home on a monthly or yearly basis.
If you don't want to settle in a specific neighborhood, then buying a home might not be for you. If you are seriously considering to buy a home, then you need to decide where to settle in and, if ever, when and where you want to relocate in the future. - 23200
About the Author:
Alexandria P. Anderson is a licensed Minnesota Realtor that helps people to find and purchase real estate in the Twin Cities and other Twin Cities property depending her clients' needs.
posted by X - Men @ 1:25 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home