For many people, buying a house brings a sense
of pride and freedom that cannot be matched by renting. When buying a house,
you become free from a landlord’s rules, and your monthly payments are actually
building equity. Although buying a house may be the first step you take toward
building long-term wealth, it is important to understand the pros and cons of
home ownership before taking the plunge.
Here is a sneak peek on what it takes to buy a
house. Are you ready?
- Ability to settle in
a community. Once you commit to buying a house, you are more likely to become
more involved in your community because you know you’ll be there for
years. You can get to know your neighbors, perhaps join a homeowners’
association, or volunteer for projects that benefit the community or the
local school.
- Build equity. When you
pay rent, you don't own anything. In buying a house, you increase your
degree of ownership in your home with every payment. Also, you can borrow
against your ownership (or equity) in the home to pay for major purchases
and you can refinance your home at favorable rates to help fund major
purchases.
- Paying your own
maintenance. When buying a house, make sure to remember that you must spend time
and money keeping your home in good repair. You need to set aside funds
for unexpected expenses, such as appliances that break, a service contract
on your furnace, or the need to replace your windows.
- Search for neighborhood
information. If you already live in the community, you may be able to skip this
step, but it’s always worthwhile to search local newspaper websites, local
government sites, community sites and blogs to find out what’s happening
in terms of upcoming development or other issues before buying a house.
- Foresee home repairs. Home inspections are
essential to buying a house and they most often work in the buyer's favor.
Dangerous conditions found in a structure and even flaws can be repaired
at the cost of the seller before the buyer takes over the property.
- Insurances and taxes. Banks require you get
insurance on your actual mortgage, as well. Private mortgage insurance
(PMI)is necessary if you don't put down at least a 20 percent or more down
payment to make sure you are good on your obligations.
Buying a house is a major decision that shouldn’t be taken lightly. But
when faced with rising rent and low mortgage interest rates that make
purchasing more affordable, you should take the time to consider the pros and
cons of buying a house.
Tam Bay Realty LLC
1408N West Shore Blvd Suite 1000 Tampa, FL 33607
(813) 908-0706
http://www.businesslocallistings.com
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