There are many considerations to make when it comes to buying a house or continuing to rent. You should take both your financial situation and your lifestyle into consideration. Do you pine for a home of your own? To paint it wild colors at your whim, to putter in your garden out back? Or are you too busy or don't enjoy yard work and hate to paint? Can you afford it? Can you afford not to? These are the questions that you will need to answer before making that big decision. I am going to cover some advantages to both. Only you can decide what is most important to you.
Advantages to Renting
Less Expensive than Home Ownership.
Typically, you will pay less for rent than you will each month to buy a home. This is because homeowners must bear the cost of repairs to the property as well as property taxes and insurance.
More Available Money
Renters will, generally, have more available money for "toys" such as, cars, mountain bikes, boats, etc. Also they have more money available for stocks, bonds and other investments.
As a renter, you have a lease, generally for one year. If you decide you don't like the neighbors, you can move!
Repairs and Maintenance
You won't have to worry about that leaky roof or the backed up toilet. Call the landlord.
Advantages to Owning
Your Own Place
Its yours!! You can do what you like. Paint it, wallpaper it, put in new flooring and carpet. Build a deck. Put up a tree swing. Have a garden and pets!
When you buy a home, you are also buying stability. A place to come home to that is all yours. It's a good feeling!
When you pay rent, the only person making money is your landlord. When you own your own home, you are building equity for yourself. Each month when you pay that mortgage, you are buying a little piece of your home. Once you have built up enough equity, you can use that equity as collateral for another loan or when you sell the house you will make a profit.
The government encourages home ownership by writing it into our tax laws. Interest on your home mortgage is tax deductible! Since most of the interest is paid during the first few years of the mortgage, this can be a significant sum of money!
Cindy Snyder is the owner of Creative Mortgage Company in Irmo, SC. Visit her website at http://www.creativemortgageco.com/
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