Everyone wants a dream home to call their own, but the decision to enter the housing market should be made with care. Your financial situation at different stages in life is important to consider before purchasing a house. The current state of real estate prices and loan rates also are key factors. If you want to make the best choice, be sure to weigh all the pros and cons.
Renting a house or apartment is the most sensible option for some individuals. If you are strapped for cash, a rental deposit is typically going to be much more affordable than a down payment on a house. In addition, some landlords will pay utility bills that would be your responsibility if you were the homeowner. If your income isn’t steady or if you haven’t established good credit yet, renting also may be the best alternative.
On the other hand, the rent that we pay to a landlord doesn’t offer the same long-term financial benefits as home ownership. When you buy a home, you are investing in your future by building home equity and wealth. Homeowners also may enjoy certain tax benefits if they choose to deduct mortgage payments when filing their income tax returns.
Unlike renters, homeowners have the freedom to do what they want with their property. They can make building improvements, decorate or paint any room, plant a garden or initiate any other changes they desire. They don’t have to worry about the rent going up or about being forced to move if a landlord faces foreclosure.
Some prospective homeowners may also be able to avoid a high down payments if they qualify for Veterans Administration (VA) or Federal Housing Administration (FHA) loans. These government-backed loans may require little or no money down on a home purchase.
A professional real estate agent can help you to sort out concerns and to choose the right path. Jillian Batchelor and her Las Vegas-based real estate team of experts at The Batchelor Group, can advise you about the steps to take as you pursue every American’s dream of owning a home!