Renting vs Buying A Home - Things 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.
Many potential homeowners simply don't take the first step towards home ownership because of the responsibilities associated with buying and owning a home. When you buy a home, you'll be responsible for more than your mortgage payment each month; home ownership involves paying maintenance costs, applying for homeowner's insurance, and paying taxes and fees. If you're interested in buying a condo, the process may be even more complicated. However,you can overcome this initial barrier that may be leaving you feeling overwhelmed - by understanding some basic principles of home buying.
It's a good idea to make up your own checklist of all the different payments involved with your prospective home. You can typically get a lot of this information from your realtor; ask them for average fees, taxes and maintenance costs for the home and create a spreadsheet of all the different elements involved. If you do this in a digital format, you can create side-by-side comparisons of each home you're interested in so you have an accurate view of all the costs involved and the total monthly expenses you'll be responsible for.
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.
Owning a home usually offers a greater tax benefit compared to renting but this is dependent on your income level and your annual real estate property tax. You may need to research on the subject a bit to determine if you'll have a tax advantage by purchasing a home.
If you can work out your tax benefits to include all of your deductions and current income level, you'll have a fairly accurate idea of what the total tax benefit of owning a home will be for your particular situation. It may be a good idea to work with an accountant or financial advisor for assistance in this area.
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.
If you're not feeling settled in a particular city or neighborhood, buying a home may be causing a lot of anxiety. Make some solid decisions about where you want to settle and where you're willing to relocate to in the long-term so you can make the best decision about your new home. - 23208
Many potential homeowners simply don't take the first step towards home ownership because of the responsibilities associated with buying and owning a home. When you buy a home, you'll be responsible for more than your mortgage payment each month; home ownership involves paying maintenance costs, applying for homeowner's insurance, and paying taxes and fees. If you're interested in buying a condo, the process may be even more complicated. However,you can overcome this initial barrier that may be leaving you feeling overwhelmed - by understanding some basic principles of home buying.
It's a good idea to make up your own checklist of all the different payments involved with your prospective home. You can typically get a lot of this information from your realtor; ask them for average fees, taxes and maintenance costs for the home and create a spreadsheet of all the different elements involved. If you do this in a digital format, you can create side-by-side comparisons of each home you're interested in so you have an accurate view of all the costs involved and the total monthly expenses you'll be responsible for.
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.
Owning a home usually offers a greater tax benefit compared to renting but this is dependent on your income level and your annual real estate property tax. You may need to research on the subject a bit to determine if you'll have a tax advantage by purchasing a home.
If you can work out your tax benefits to include all of your deductions and current income level, you'll have a fairly accurate idea of what the total tax benefit of owning a home will be for your particular situation. It may be a good idea to work with an accountant or financial advisor for assistance in this area.
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.
If you're not feeling settled in a particular city or neighborhood, buying a home may be causing a lot of anxiety. Make some solid decisions about where you want to settle and where you're willing to relocate to in the long-term so you can make the best decision about your new home. - 23208
About the Author:
About the Author: Alexandria P. Anderson is an Minnetonka Real Estate agent that helps people to find and purchase Minnetonka Homes and properties in the Twin Cities of Minnesota.
posted by X - Men @ 4:43 AM
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