Will’s Blog for First Time Buyers

When it comes to the decision of whether to buy or rent your home there are many things that you need to consider before you make your final choice. Your final decision will be determined by several factors that include:

• How much money you make and how secure your job is.
• How much money you have to use as a down payment.
• Are there homes available for purchase in the area where you want to live.
• What type of a home you need and how much space you need for your family.
• Is it the right time of year to buy a home.
  

It’s important that you have answers to all of these questions before you start looking for your perfect home. There are some specific advantages and disadvantages between buying your home or renting it that you’ll want to consider. First let’s look at the pros and cons of buying or renting a home:

Advantages of Buying

• When you own your home you accumulate equity. This means that you as you make your monthly payments the value of your home rises and at some point in the future you can borrow against this equity, using it much like a savings plan.
• There are some good tax advantages. For example, the interest you pay on your mortgage is a tax deduction.
• When you own your home you have a greater sense of security.
• You have the ability to remodel or redecorate your own home without having to ask permission of a landlord.
• Your monthly mortgage payments stay relatively consistent for many years, at least until it’s time to renew your mortgage.

Disadvantages of Buying

• In order to have low mortgage payments you need to have a significant down payment.
• You’ll be responsible for the cost of all maintenance and repairs.
• Owning your own home takes time and commitment.
• Your home can decrease in value after you buy it depending on the real estate market and the area in which you live.
• When you own your own home your money is often spent before you earn it due to mortgage payments, repairs, maintenance, and remodeling.

Advantages of Renting

• You can move in and out as you please since you’re not committed to where you live.
• All repairs and maintenance to the rental property are taken care of by the owner.
• Your rent payments will most likely be less than mortgage payments.
• You’re not tied down to your home so you can come and go as you please.

Disadvantages of Renting

• There may be restrictions on the rental property when it comes to children, pets, and noise.
• The money you pay for rent won’t gain you any equity or savings.
• You need permission to remodel or redecorate.
• You won’t qualify for any tax deductions.

Once you weigh the pros and cons of owning or renting your own home you’ll be ready to either buy your next home or continue to rent. Make sure that you take all factors into consideration so that you end up with the home that you want at a price that you can afford to pay.