Renting Or Buying Your First Home - What to Consider
Buying and renting a home each has its own benefits and drawbacks. We will discuss the issues surrounding both home ownership and renting to aid you in deciding which path to follow.
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.
The idea here is to figure in all your deductions and current income level into the calculation of your tax benefits. You can ask an accountant or financial advisor for assistance in determining the exact tax benefit you'll get.
Finally, think about your future for the long-term. Are you intent on staying in a specific neighborhood for the next five years? For the next ten years? Where do you see yourself living 30 years from now? One of the biggest psychological benefits of renting is the 'temporary' mentality and ease of moving. Since you can choose to rent a place on a month-to-month basis, sign a short term lease or just renew from year to year, there is a sense of freedom involved with renting.
Owning a home is suited for people who can commit to settle in a city or neighborhood over the long-term. If you are serious about buying your own home, it would be best to decide on where you want to live or re-locate first in the long run. - 23311
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.
The idea here is to figure in all your deductions and current income level into the calculation of your tax benefits. You can ask an accountant or financial advisor for assistance in determining the exact tax benefit you'll get.
Finally, think about your future for the long-term. Are you intent on staying in a specific neighborhood for the next five years? For the next ten years? Where do you see yourself living 30 years from now? One of the biggest psychological benefits of renting is the 'temporary' mentality and ease of moving. Since you can choose to rent a place on a month-to-month basis, sign a short term lease or just renew from year to year, there is a sense of freedom involved with renting.
Owning a home is suited for people who can commit to settle in a city or neighborhood over the long-term. If you are serious about buying your own home, it would be best to decide on where you want to live or re-locate first in the long run. - 23311
About the Author:
Author and Realtor Alexandria P. Anderson helps clients to find and purchase St. Louis Park Townhomes as well as St. Louis Park Condos and other property in the Twin Cities.
posted by Mr. Forex at
2:19 AM
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