Online Guide to Buying Your First Home
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Are you wondering if owning a home or renting one is a good decision. Here are a few things you might want to consider before making a decision. First, how do you feel about living in the same location for a long time. When you own a home you are committing to one location for a up to 30 years. This could eliminate some of the stresses involved with needing to move as a renter every 6-12 months not to mention increasing rental prices.
Renting vs. Buying
But if you rent, it’s usually easier to move on a short notice particularly if you are in the military as most lease agreements have a “military clause” if you have to relocate. Moving around will definitely give you exposure to new neighborhoods, cities and cultures. You will also have the flexibility to move without having to sell or lease out you home. How important is it to you to be able to customize your home? Owning your own home gives you the luxury of making improvements to your home to suit your tastes and preferences. However, it doesn’t require big changes to make any place a home including rentals. Are you prepared to spend the time and money on unexpected repairs? As a homeowner you are responsible for your home’s maintenance and repair expenses. You will need to set aside money to budget these cost. If you rent your landlord should pay for such repairs. Are you looking into buying a home as a financial investment. When you own a home you will be able to build equity over the long term. In an normal economy buying a home is usually an appreciating asset. If you rent, you could put money in a different asset such as a savings account but according to an article in Money Rates, Americans have one of the worst savings rates in the western hemisphere which is about 2.83%. Lastly, homeowners are eligible for tax benefits like deductions on mortgage interest paid and property taxes. As a renter, you forego such tax benefits in lieu of making mortgage payments for 30 years. To learn more call a real estate professional in your area.
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