Renting a house is probably the easier thing to do with regard to finances. The security deposit won't be a huge sum and budgeting will be easier when you know how much rent should be paid monthly. Plus you don't have to worry about loss of investment if the value of the property depreciates. Moving-in costs will be minimized as appliances and utilities maybe provided for by the landlord. Apart from the money bit, amenities like pool facilities, tennis courts, laundry facilities etc. maybe available. You will have fewer responsibilities as the landlord may take care of repairs and maintenance. If after moving in you hate the neighborhood, you can always pack up and leave. There's always the can-get-out option. If you also travel a lot, then it is convenient as security maybe provided for.
It all sounds good no doubt, but what if your landlord keeps tabs on your every movement? Making changes around the house may not be an option. There will be more restrictions than you can imagine from pet ownership, noise level to smoking etc. You will also have less space for the amount of money you are actually paying and you won't be able to gain from the rise in value of the property. Also there are no tax deductions when it comes to renting. Very importantly, after a period of time you will have to shift and this maybe a tedious task not to mention distressing if you have fond memories of the house.
So to have something to call your own at the end of the day- should you buy a house? May be, as owning a house can be satisfactory and will give you a sense of pride. Financially, you will be privileged with special tax deductions and the house is an investment a form of savings. Monthly payments will remain reasonably constant giving you the chance to plan your finances.
Undoubtedly owning a home can be satisfactory but it isn't hassle free. Buying a house is a huge commitment in terms of time, money and effort. Even if you can pay the substantial down payment now, do you have job security for the next few years to be able to clear your mortgage? Money for insurance, maintenance and repairs must be set aside. After deducting that amount, see if you can manage your other expenses with your income. At some point property taxes may shoot up. Also if the property does depreciate in value, chances for resale are minimized. An unexpected reduction in income may leave you in a soup. Maintenance and repairs not only require money but time and effort. If you travel a lot, security may pose to be a problem unless you can afford to hire someone. When the children grow up and leave, the house may be too big for you. http://rainehorne.wordpress.com/
It all sounds good no doubt, but what if your landlord keeps tabs on your every movement? Making changes around the house may not be an option. There will be more restrictions than you can imagine from pet ownership, noise level to smoking etc. You will also have less space for the amount of money you are actually paying and you won't be able to gain from the rise in value of the property. Also there are no tax deductions when it comes to renting. Very importantly, after a period of time you will have to shift and this maybe a tedious task not to mention distressing if you have fond memories of the house.
Undoubtedly owning a home can be satisfactory but it isn't hassle free. Buying a house is a huge commitment in terms of time, money and effort. Even if you can pay the substantial down payment now, do you have job security for the next few years to be able to clear your mortgage? Money for insurance, maintenance and repairs must be set aside. After deducting that amount, see if you can manage your other expenses with your income. At some point property taxes may shoot up. Also if the property does depreciate in value, chances for resale are minimized. An unexpected reduction in income may leave you in a soup. Maintenance and repairs not only require money but time and effort. If you travel a lot, security may pose to be a problem unless you can afford to hire someone. When the children grow up and leave, the house may be too big for you. http://rainehorne.wordpress.com/
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