Many people dream of the day that they will buy and own their first home. Purchasing a home is a big deal.
Before you start the process make sure that you know the pros and cons that are associated with owning your own home. The following are some great advantages to buying and owning a home instead of renting.
The first advantage is that when you buy a home you gain equity. Equity is the value of an ownership interest in a property and the difference between the fair market value and unpaid mortgage balance on a home.
As time goes on and your payments are made your mortgage will decrease, the property will appreciate, and your equity will continue to get bigger.
Even if your home never appreciates which is very unlikely and stays the same you are continuously paying down your mortgage, which is allowing you to own a bigger chunk of your home.
Someday you will be able to pay off the mortgage. When this happens you completely own your home.
If you rent, your payments are similar to what a mortgage payment would be, but rental payments do not count toward paying off your mortgage. You are literally paying someone's mortgage and creating equity for the owner of your rental.
Second, possessing your own home creates a sense of ownership that gives you a great feeling.
There is a great sense of ownership when you own your own home. You no longer have to look to someone else when you want to paint or hang a picture. You have the freedom to do what you want with your house when you want it.
You can hang pictures, remodel and renovate, knock out walls, add bathrooms, hang shelves, put in a fireplace, paint, tear out the floors, and do whatever work or improvements you want. When you own your own home you also gain all the benefits for improving your property including raising your homes value.
However, one of the benefits of renting is that the landlord takes care of the maintenance, saving you time and money. If your dishwasher breaks, the lawn needs to be mowed, or the leaky sink fixed you can call the owner. If you live in a home you own you are the owner.
Third, owning your own home gives you great stability. It's a great feeling to know that if you lock in a mortgage rate for 5 even 10 years that your payments won't change. As far as renting goes, rent can usually increase fairly easily according to the terms of agreement.
It also stabilizes people by giving them a permanent place to live. Generally, people who rent are not looking to stay in an area for too long. When many people buy homes they can see themselves living there for at least five to ten years.
However, in certain situations it is better to have the flexibility that renting affords. These would include the college years, if you plan to move in the near future, or just want to live somewhere temporarily.
Buying a home may be a great idea depending on the situation you are in. Analyze your situation and then determine what is best for you.
Author Resource:
Jack R. Landry is a resident of California and has written hundreds of articles relating to tourism and Discovery Bay real estate . He has been involved in local travel and tourism for over 20 years.
Contact Info:
Jack R. Landry
JackRLandry@gmail.com
http://DiscoverDiscoveryBay.com
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