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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