Renting a home is a viable option for people who are unable to invest in a home, but eventually, a time comes when renting is no longer as appealing as settling down and purchasing real estate. Homeowners are able to itemize deductions and claim the following additional deductions: home mortgage interest, state income taxes, property taxes, personal property taxes, and moving expenses.
Before you consider making the switch from renting to owning, be sure to do the math. Determine monthly payments on a home and compare it to your current monthly rent. Be sure to think about these following factors when making your decision: annual income rate, price of a down payment, any debt you may have, property tax rates, home insurance rates, interest rates, and the length of your loan.
If you are considering making the switch from renting to owning, check out these helpful tidbits you may have not thought about.
Expect additional expenses. Homeowners pay a monthly mortgage, property tax, and insurance. When first closing on a house, expect to pay even more, as you will be required to fund a down payment, closing costs, and additional fees.
Explore long-term benefits. It’s always important to discuss how much your house will be worth if and when you decide to sell it. There are several deciding factors, including property value, mortgages, and the housing market. Renovations and regular maintenance is required to keep your home’s value afloat.
Consider upkeep and maintenance. As mentioned in the last point, upkeep on a home is important. When renting, the maintenance usually falls on the landlord; as a homeowner, the responsibility falls solely on the owner. This, of course, means more money, time, and effort on your part.
Determine if the lifestyle is fitting. Renting gives more freedom to the tenants. After the lease is up, there is no obligation to stay. Renters have the ability to move whenever necessary without needing to put much thought into relocating and what will become of the house. As a homeowner, your property is a financial responsibility. This can make decisions a little more difficult; it will be much harder to relocate for a better job if it means selling a house.
When it comes to owning a home, the decision can be a difficult, life-altering one. Make sure the choice is right for you. Do the proper research and make sure you know the facts before giving up your cozy rental accommodations.