At some point in our lives, many of us ask ourselves the same question: should I keep renting or should I buy my own home?
Buying a home has several attractive perks, including financial security, flexibility, and stability. That being said, it’s not for everyone.
How can I know?
Ask yourself these 3 questions:
- Do you enjoy moving often?
- Do you prefer using your savings for such things as vacations, retirement or starting your own business?
- Do you enjoy not having to worry about regular maintenance and repairs?
If you answered yes to any of these questions, you may not be ready to own a home. While you probably have good reasons for buying a home, you also must consider your reasons to not buy a home.
Remember, buying a home is one of the biggest emotional and financial decisions you’ll ever make. Prepare yourself, so you can to make a knowledgeable decision.
Although buying a home almost always seems like a great idea, it’s important to understand what homeownership involves. Being a homeowner is something to be proud of, but it also means having to invest money, time, and energy and take on added responsibilities.
Advantages to owning
Here are some of the main advantages of owning a home:
- Financial security
If housing prices rise, your home can provide you with some financial security due to capital appreciation. - Flexibility
You can decorate or renovate your home to meet your family’s personal tastes and needs - Stability
Having a place of your own.
Disadvantages to owning
Although it’s nice to think about the positive aspects of owning a home, consider the downsides as well. Here are some of the main disadvantages of owning a home:
- Financial stress
Coming up with the down payment, meeting regular mortgage payments, paying property taxes, and other ongoing costs will tie up a lot of your cash, putting considerable stress on your finances. - Maintenance
Keeping your home in good shape requires time and money. - Higher costs
You may pay more each month for housing than you did as a renter. There are also extra costs for maintenance and property taxes. - More responsibility
You alone are responsible for payments, repairs and maintenance.
Do your research. Outline all the costs of renting your current home and the home you want to buy. Consider all the other benefits and drawbacks for renting and owning. It will take time, but making the right decision should take time. It’ll be worth it.