Should you buy a Home?

Apartment

When you have a family, you need to decide where you are going to live. Most families just starting out cannot afford a home right away so they choose to rent an apartment.

Then before you know, it you get used to living there and it is not until the family starts to grow that the question as to whether to buy a home even comes up.

You are tired of listening to the neighbors argue all night, you are tired of paying rent and having nothing to show for it and most of all you need the extra room that a house would give you.

The problem that most people face when it comes to buying a house is that you have to have a large down payment; saving up this much is often difficult for a new and growing family.

What are the benefits in buying a house and how can one save up the down payment needed to buy one?

Reasons to Buy a House

Appreciation

This refers to an increase in value of something over time, in this case your house. By buying a house you are not spending money as you do with rent and have nothing to show for it at the end.

For example, if you keep your house updated and take care of it, it will always be worth something. If you want to move you can sell your house and use this as a down payment, whey you die you can leave it to someone and it will be worth something.

This is in stark contrast to paying for an apartment every month and having nothing to show for it in the end.

Independence

No longer do you have a landlord who is telling you what you can and can’t do in your home; if you want to paint the walls purple then no one can stop you.

If you want to stay up all night and watch TV there are no people sharing a wall or floor with you who will complaining that you are keeping them up.

If you bought land with your house you will have a yard to send the kids out to play in, plant flowers, a garden or to play baseball in if you so desire. It is yours to do what you want with it.

Interest Rates are Low

At this time, the interest rates on home loans are historically low. If you buy now the amount you will pay on interest will be the lowest it has in a long time and probably will be in the futures.

Pride of Ownership

This is probably the number one reason that people want their own home; they want to fix the home up the way they want.

They want their lawn to be the pride of the neighborhood.  When something breaks you want to fix it up because it is yours not someone elses that your are renting.

Tax Deductions

When you rent your home you cannot claim any of your rent as a deduction on your income tax; however when you are paying a mortgage you can deduct the interest you pay on your mortgage from your total income.

Those with newer mortgages are getting a bigger deduction because they are usually paying more in interest in their mortgage.  Property taxes can also be deducted on your taxes.

Stability and Emotional Security

You don’t need to worry about the rent going up or the landlord throwing you out. You can fix your monthly payments by getting a mortgage that fits with what you can owe, and since it is your house there is no one to throw you out.

Garden

Unlike in an apartment, you can have a garden if you so choose.

Plant Roots in the Community

Now that you own a home you will get to know your neighbors when you are out mowing or working in the garden. You will go to block parties and will get to know your neighbors more and more.

Greater Say in Community

As a home owner, you will have a greater say in the community. This is because most renters tend to be more transient than those who have a home.

Reasons Not to Buy

If your Credit Score is Bad

If your credit score is bad it will be difficult for you to get a loan and when you do your payments will be higher. You will end up paying a lot more than you did as a young kid.

Not Enough Cash

If you don’t have a lot of money saved up you could run into a lot of unexpected expenses that you cannot afford in the long run.

Don’t Buy When Everyone Else Is

You will do better if you buy off season so you don’t have to compete with everyone else.

Making sure contents are well organized.