| Because most homeowners invest a third of their | | | | your finances. Obtain a credit report, calculate the cost |
| income when buying a home, you may be fearful of | | | | difference between renting and owning a home, and |
| spending so much money in a short period of time. For | | | | decide how much home you can afford. This will make |
| those who aren't ready for homeownership, the | | | | the process and the reality of paying monthly housing |
| alternative is to rent a home or apartment. But does | | | | expenses much easier to bear. |
| this make financial sense or are you wasting money | | | | Renting Instead of Buying |
| instead of investing in property that will appreciate over | | | | Even though owning a home can be costly, the |
| time? | | | | amount you pay in rent each month can also be costly. |
| Expenses Associated with Buying a Home | | | | The main difference is that when you move, you will |
| For the first-time home buyer, expenses such as a | | | | not profit from the move because you don't have |
| down payment, closing costs, and property taxes can | | | | property to sell. But renting has many upsides as well. |
| be daunting to pay. In addition to paying for the home, | | | | Because you don't own the property, you are not |
| there is homeowner's insurance, utilities, maintenance | | | | responsible for maintenance fees or repairs. These |
| costs, and the time spent taking care of the property. | | | | expenses are included in your rent. Instead of spending |
| These costs can add up over time and if you don't | | | | the weekend fixing the plumbing, all you have to do is |
| have an adequate amount in your savings account, | | | | call maintenance and they will send someone. Many |
| you may be unable to care and maintain your home | | | | apartment homes include utilities in the rent. All you will |
| the way that you want. | | | | have to pay for is cable, internet, and phone expenses. |
| But when you plan and save for a home, these costs | | | | Another benefit to renting instead of owning is that you |
| will not seem as bad as your home appreciates in | | | | can move whenever you want because you don't |
| value. If you decide to move or relocate for your job, | | | | have any property to sell. For those who travel for |
| you can sell the home and hopefully make a profit. | | | | work often or those who enjoy living in different |
| For most people, buying a home is more than making | | | | places, renting is a better option. |
| an investment - it's a place to call their own. | | | | While owning a home may make more financial sense |
| Unfortunately, some people jump into the process | | | | in terms of investing your money in something that will |
| without fully considering all the costs associated with | | | | give you a return, you need to consider your lifestyle |
| homeownership. This is why many people have to | | | | and current financial situation. What is the point of |
| foreclose or sell their homes before they're ready to | | | | investing in a home you can't afford? Buy a home |
| move. | | | | when you're financially secure instead of buying a |
| Before you start house hunting, take a close look at | | | | home when other people think you should. |