Buy or Rent: The pros and cons on buying your own home

Everybody wants a home. It is the ultimate dream — as it is an ultimate necessity. You might also want one for yourself but you might be asking whether you are ready or not. Here is a quick checklist to help you gauge your readiness before purchasing a house.

Factor 1: THE STAYING POWER

Figure out the specific time table which you will be staying on your purchased new home. If you are only looking into staying there for about 1 to 3 years then it would be best for you to rent out a home instead. A house is a long time responsibility, commitment and investment. Be sure to pick an area that you feel comfortable to live in for bout a decade or so — because once you sign up for t; it\’s also the time to pay for it.

Factor 2: SAVINGS

How much is your savings? Once you\’ve answered that question; the next question to ask is \”Is this money really alloted for my new home?\” If it\’s not, let say it is for your retirement or the college fund for your son or daughter, then opt to save money that is directly alloted for your purchase.

Factor 3: STUDY YOUR CURRENT CASH FLOW

Print out a statement from your bank detailing all your savings — from the time of deposists, withrawals and maintaining balance in each of those dates. You can then attach this financial statement to your bills. This will help give you an overview of how you handle your finances. If you see that the bills are running rather high and the cash supply is a little low, opt to save more for your purchase. You can rent out a place for a little while until you have saved up adequate money for your house.

Remember: Include real estate agent fees on your savings\’ plan.

Ok. Now we have dicussed the check list that has potetially help you to distinguish your readiness in buying a new home. Next will be the pros and cons of owning your home. Weigh them down. This will hekp you to finally decide whether to pursue your purchase or rent a unit or an apartment space.

PROS:

1. Owning a home serves as a backbone for family values growth.

2. No more renting. Even if you pay the house monthly, at least you\’ll know that at the end of it, you will be owning the house.

3. Owning a home is highly beneficial for credit card and loan applications. Research shows the 85% of loans approved are for home owners. Your house is your asset. However, this may depend on the creditor or the bank. Be sure also that you confirm with them their policies as per the house ownership maturity. Some creditors may require people who own their homes for about 3 to 5 years.

Remember: try to pay off your house before putting it on mortagage.

Do what you want when you want it. You have the freedom to do as you please; paint the walls red or hung thousand of family pictures on the wall. You are the boss of your home. You call the shots.

CONS:

1. You are now responsible for home repairs.

2. The tendency to over mortgage your home is a possibility. More debts, more pain.

3. You are bound to stay in one place for long periods of time.

Rent or buy? It is the ultimate question. Study your angles and weigh down your options for a certain, reliable, good and clean decision.

Author Bio: I write for Pool Prodigy about aqua rite chlorine generator and pool salt chlorinator as well as other pool supplies.

Category: Home Management
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