So you want to buy a house?

Taking the step into home ownership can be a rewarding step for many first-time homebuyers. Before you take the plunge, look before you jump. Homeownership is not for everyone.

304 Consider the advantages of renting versus owning:
-Monthly costs: rent can be more profitable than ownership if utilities are included. The monthly cost of owning is typically higher than renting after adding the cost of the mortgage, maintenance, taxes, and utilities.

-Features: Some rental apartments offer amenities not found in smaller condo/co-op buildings or single-family homes, such as a 24-hour doorman, dry cleaners, or a grocery store. Unless you’re shopping in a building with all the amenities, you’ll most likely have to go off-site for some services that you’re accused of only taking an elevator ride.

-Maintenance and Repairs: Renting allows you the luxury of not repairing or maintaining anything; if the air conditioner breaks, call the manager. As a homeowner, you repair the air conditioner or locate, meet and pay a repairman.

-Mobility: Renting offers you the convenience of leaving home when your rental contract expires. When you own, you’re tied to other people’s move-in timelines when a buyer or renter agrees on a date, which might not coincide with your timeline.

305 Consider the advantages of owning versus renting:
-Heritage: The rent has no patrimonial benefits. Homeownership provides forced savings because typically each monthly payment is part of the principal, which builds your equity. The potential appreciation of the property can also increase your equity. Note: If property values ​​decline in your market, you could owe money when you sell.

-Control over your environment: A lease may not allow you to have pets, paint your walls red, or have a roommate. With owning you can choose a building or house that allows you to have pets, decorate to your liking, have roommates, or add a washer and dryer.

-Stability: Your landlord can raise your rent, sell the property, or convert your rental to condos and force you to move on short notice. With a fixed-rate mortgage, you can control your monthly housing expense and have the peace of mind that you can stay as long as you want.

-Tax benefits: Rental offers none. Owning a home allows you to deduct mortgage interest and home equity interest from your taxable income. Consult a tax professional for more information.

306 Recognize that renting might be a better option for you in the following situations:
-If you are in a life transition. as recently widowed or divorced, it will offer you flexibility.

-You do not want to have repairs or maintenance responsibility.

-You have alternative investments for your down payment funds.

-Whether you travel frequently for business or pleasure, renting gives you the freedom to lock up and go, without worry or responsibility.

-Your company is considering relocating you in the next 20 months.

-Your company is considering downsizing its employees, merging with another company, or selling to new owners.

-The real estate market you want to buy in is a seller’s market, major employers are leaving town, or uncertainty about proposed development could affect home prices negatively.