Rent or Buy a House?


A

Add

Buying a home is a major financial commitment, and it can be a great
investment as well. Home prices have continued to rise year after
year, even in times when the overall economy was not so strong. Rising
home prices can be somewhat of a conundrum for those not already in
the housing market, however. As prices rise higher and higher, renters
may be left wondering if they can really afford to become homeowners.
The decision of whether to rent or buy a house is an important one,
and it is vital to be sure buying a home is the right move before
making the plunge.

Before you decide to buy a home of your own, it is vital that you
understand all the expenses involved with home ownership. While the
costs of the down payment and the monthly mortgage payments are
obvious, there are some other expenses involved with home ownership
that you may not have thought of. For one thing, if the heater dies on
the coldest night of the year, or if the toilet plugs up, there is no
landlord to call. You will have to call a technician or a plumber, and
you and only you will be responsible for the cost of the home
repairs.

In addition, you will also be responsible for all the monthly utility
bills, including the phone, gas, electricity, trash, water, cable TV,
etc. Be sure your budget allows for these bills in addition to the
monthly mortgage payment.

As a homeowner, you will also be responsible for paying real estate
taxes on the assessed value of your home. Be sure you know how much
the taxes are before you buy the home. Also take into account that
property taxes are likely to rise over time. Be sure to budget extra
money to take care of these real estate taxes.

And finally, be sure that your home is adequately insured and that you
can afford the insurance payments. Be sure any insurance policy you
take out will cover the actual replacement cost of the home, not just
its current value.

If you rent a home or apartment, your commitment to the property is
limited by the length of the lease. Whether the lease is month to
month or a year at a time, your commitment is limited to the time you
choose to reside there.

When you choose to buy a home, however, you are making a 15-year or
30-year commitment to a mortgage loan. You must make sure you are able
to make that monthly payment, no matter what your circumstances.
Buying a home requires a long term, well thought out commitment of
both time and money. Be sure you are ready for this commitment before
taking the plunge into home ownership.

Of course, you will never own the property you rent. On the other
hand, even if you have a big mortgage, you will build up equity in
your home month after month. Instead of paying your landlord's
mortgage, you will be paying your own mortgage. This ownership can
make home ownership a very attractive option indeed.

Another advantage of home ownership is that your payment can be fixed
for the life of the loan. If you choose a fixed rate mortgage, you can
be sure that your monthly payment will be the same month after month
for the life of the mortgage loan. Compared to your monthly rent
payment, which is likely to rise year after year at least as fast as
inflation, your monthly mortgage payment will not rise. This can make
your monthly mortgage payment more affordable than your rent.

Another popular advantage of buying versus renting is the tax
deductibility of mortgage interest. This tax deductible interest can
provide the homeowner with a big savings at tax time. Renters
typically are not able to deduct any part of their monthly rental
payments.

The most important thing to consider when deciding whether to rent or
buy a house is your level of commitment and your financial stability.
You will need to ensure that you can afford the monthly mortgage
payments, plus any home repairs, insurance and taxes. A home of your
own can provide both a residence and peace of mind, but it is
important to be sure a home is the right choice for you. Don't let
yourself be pressured into this important decision. Whether to rent or
buy a house is a decision every person must make for him or herself.
So, should you rent or buy a house? Find out the answer by using this
mortgage calculator and click on 'Rent vs Buy' link.

http://homemortgage-rate.blogspot.com
 
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S

shanpeter

Yes, Nice Information!

Add;82530 said:
Buying a home is a major financial commitment, and it can be a great
investment as well. Home prices have continued to rise year after
year, even in times when the overall economy was not so strong. Rising
home prices can be somewhat of a conundrum for those not already in
the housing market, however. As prices rise higher and higher, renters
may be left wondering if they can really afford to become homeowners.
The decision of whether to rent or buy a house is an important one,
and it is vital to be sure buying a home is the right move before
making the plunge.

Before you decide to buy a home of your own, it is vital that you
understand all the expenses involved with home ownership. While the
costs of the down payment and the monthly mortgage payments are
obvious, there are some other expenses involved with home ownership
that you may not have thought of. For one thing, if the heater dies on
the coldest night of the year, or if the toilet plugs up, there is no
landlord to call. You will have to call a technician or a plumber, and
you and only you will be responsible for the cost of the home
repairs.

In addition, you will also be responsible for all the monthly utility
bills, including the phone, gas, electricity, trash, water, cable TV,
etc. Be sure your budget allows for these bills in addition to the
monthly mortgage payment.

As a homeowner, you will also be responsible for paying real estate
taxes on the assessed value of your home. Be sure you know how much
the taxes are before you buy the home. Also take into account that
property taxes are likely to rise over time. Be sure to budget extra
money to take care of these real estate taxes.

And finally, be sure that your home is adequately insured and that you
can afford the insurance payments. Be sure any insurance policy you
take out will cover the actual replacement cost of the home, not just
its current value.

If you rent a home or apartment, your commitment to the property is
limited by the length of the lease. Whether the lease is month to
month or a year at a time, your commitment is limited to the time you
choose to reside there.

When you choose to buy a home, however, you are making a 15-year or
30-year commitment to a mortgage loan. You must make sure you are able
to make that monthly payment, no matter what your circumstances.
Buying a home requires a long term, well thought out commitment of
both time and money. Be sure you are ready for this commitment before
taking the plunge into home ownership.

Of course, you will never own the property you rent. On the other
hand, even if you have a big mortgage, you will build up equity in
your home month after month. Instead of paying your landlord's
mortgage, you will be paying your own mortgage. This ownership can
make home ownership a very attractive option indeed.

Another advantage of home ownership is that your payment can be fixed
for the life of the loan. If you choose a fixed rate mortgage, you can
be sure that your monthly payment will be the same month after month
for the life of the mortgage loan. Compared to your monthly rent
payment, which is likely to rise year after year at least as fast as
inflation, your monthly mortgage payment will not rise. This can make
your monthly mortgage payment more affordable than your rent.

Another popular advantage of buying versus renting is the tax
deductibility of mortgage interest. This tax deductible interest can
provide the homeowner with a big savings at tax time. Renters
typically are not able to deduct any part of their monthly rental
payments.

The most important thing to consider when deciding whether to rent or
buy a house is your level of commitment and your financial stability.
You will need to ensure that you can afford the monthly mortgage
payments, plus any home repairs, insurance and taxes. A home of your
own can provide both a residence and peace of mind, but it is
important to be sure a home is the right choice for you. Don't let
yourself be pressured into this important decision. Whether to rent or
buy a house is a decision every person must make for him or herself.
So, should you rent or buy a house? Find out the answer by using this
mortgage calculator and click on 'Rent vs Buy' link.

http://homemortgage-rate.blogspot.com
'Human Anatomy Online' (http://www.innerbody.com/)
 
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R

Roger Mills

In an earlier contribution to this discussion,
David Floyd said:
Except that it's for US ownership and in a UK newsgroup - what a
pillock!.

DF
Along with a whole lot of other posts submitted by "Add" which only apply to
the US!
--
Cheers,
Roger
______
Email address maintained for newsgroup use only, and not regularly
monitored.. Messages sent to it may not be read for several weeks.
PLEASE REPLY TO NEWSGROUP!
 

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