Rent Vs Own
Nearly everyone seems to have an opinion about buying a home. People in the real estate business — including agents, lenders, property inspectors, and other related people — endorse homeownership. Therein lies one fundamental problem of nearly all home-buying books written by these professionals who are ultimately only interested in selling themselves—which means that their advice is always biased towards getting YOU into this situation as soon as possible. Buying a home is often seen as the ultimate goal for most people but it’s not always right. To decide if you should buy, consider these five advantages that come with ownership and see which apply to your situation:
-A sense of security knowing where you live
-An increase in wealth by building equity through homeownership
-The potential to make money on resale value when selling or refinancing homes; increased mobility between jobs
-Putting down roots and fixing up houses add valuable skillsets to one’s resume
-Bucket List
Benefits of Home Ownership
There are many benefits that come with homeownership, but for everyone these advantages may not apply. To decide if now is the time to buy a home you should consider your current situation and what unique aspects of this type of purchase it will have on your life moving forward. You may have given up your childhood bedroom for the first time when you moved to college, but it’s a little bit of home that comes with renting. Whether or not this is worth paying hundreds per month depends on whether or not you can afford it — so if things get tight at any point between now and then (or even after graduation), just know there are other options.
According to many home buyers, the average price for a starter-home is around $150,000. However this does not include any upgrades you might want or need such as landscaping and new appliances which can quickly escalate your costs immensely. In most parts of the United States, we’re talking about an astronomical number – ($150k),($225K)$350K+ for sticker prices . (Of course if you are higher income earner,) You may think that buying residential property below half million dollars will be difficult given some areas expensive housing markets like New York City, Miami and other big cities.
What Happens to Rent
In your adult years, the thought of what happens to rent as we get older may be far from our minds. But when it was revealed that paying $1,000 a month now is like buying a home for only $200k and with inflation gradually increasing over time at rates around 4%, 40 years later will cost us up to nearly four times more because paying 1k per month today could equate renting an apartment worth 960K by then (wow?!) You’ll never see a price hike in your mortgage payment, but you will have to luckily keep up with increases on everything else related to owning and maintaining the home. A fixed-rate mortgage locks down your monthly payments at one set rate for as long as it takes to pay off the loan amount owed. One of these advantages is that only property taxes, insurance costs and maintenance fees go up over time while interest rates remain relatively steady. The other disadvantage? If inflation rises significantly enough then so too would be higher living expenses associated with house ownership like groceries or utilities – not just those directly related such an increase in housing prices themselves!
Renting can be a headache and leave you wondering what your next move will be. With the ever-rising prices of rent, it’s no wonder that many people are opting to buy their own homes rather than continue renting or live with an evil landlord who is always asking for more money in return. Owning a home has its benefits: while there may still be some unexpected costs like repairs from time to time, these aren’t as bad when they’re happening on your property! Owning a home isn’t just about being comfortable (although this is probably one of our top priorities), but also having peace of mind knowing we won’t have any nasty surprises down the line because now everything belongs solely to us. When you own your home, the good news is that you’re generally in control — and there’s no landlord to stop up toilets or paint walls. But even if they’re done by someone else on your behalf, don’t think it’ll be easy – those are still tasks which belong solely within a homeowner’s responsibilities.
Final Thoughts
When you make a major decision, be it personal or financial, it’s perfectly natural and human to feel uncomfortable if you’re flying by the seat of your pants. But when buying an expensive home without researching both sides of every issue? You’re just guessing how much money is enough for that property.