On the
outset renting a home may seem like a convenient option
with a lot of flexibility. But it too has its own drawbacks.
Advantages of Home Buying
Imagine you are in a rented home and paying rent
for years and years. Finally you own nothing. In effect
you would have paid a considerable price for just to live
in a space that will never be yours in any way. But when
you go for home buying, you pay for a property and at the
end you become the proud owner of an asset. This is a major
advantage of home buying.
When you
are in a rented home, as you pay a fixed amount as monthly
rent you,that is an expenditure. But when you go for home
buying, each time you pay the mortgage you you are moving
closer to owning your home. As you go on paying your mortgage,
your equity in the home goes on increasing and this increases
your chance to sell the house or borrow money using it.
Cost of Home Buying
When you decide to buy a home, estimation of the associated
cost is very important. Down payment and mortgage are the
two important costs associated with home buying. Yes, there
are other costs as well like private mortgage insurance
which comes in to picture when your down payment is less
than 20% of the home price, home owner’s insurance, property
taxes and maintenance. These extra costs may amount to around
a 40% in your monthly payment. An exact estimation of the
expected monthly payment helps you to save from troubles
later on.
But your
home buying costs have an additional advantage. Your mortgage
interest payments and a few property taxes are tax deductible.
Could there be a better reason to go for home buying? You
are making an investment and for that you get concession
from federal Government!
Home buying
is an intelligent decision when you consider long term cost
benefits whereas renting a home is a convenient option offering
short term facility flexibility.
When you
look ahead, home buying is a wise decision indeed
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