The Psychology of Renting vs. Buying A Home
If you've considered buying a home after renting an apartment or condo for several years, you will probably need to overcome several psychological barriers to become completely comfortable with the process.
Long time home renters might feel uneasy about the idea of buying their own home. This is because buying a home is much more complicated than the renting process. Homebuyers are obliged to apply for home insurance, pay for monthly home maintenance costs, and settle real estate taxes and fees. It might seem daunting at first, but anyone can be more comfortable with the home buying process by knowing more about it.
Ask your realtor for information regarding all payments involving homes you are interested in. Ask about maintenance costs, average fess and taxes and organize all information in a spreadsheet. Organizing these data will give you a bird's eye view of the total and monthly costs you have to pay for. It is highly recommended that you use a digital spreadsheet so that you can easily compare different homes side by side.
Author Ilyce Glink of '100 Questions Every First-Time Home Buyer Should Ask' explains that buying a home also means you're buying into your local community, because you're responsible for local taxes, trash pickup and other services that may not accompany renting in the same area.
Next, you'll need to do some extensive research about tax benefits. Home ownership usually does give you several tax advantages over renting, but this will vary significantly depending on your current income and the total amount of real estate property tax you will be paying each year.
The idea here is to figure in all your deductions and current income level into the calculation of your tax benefits. You can ask an accountant or financial advisor for assistance in determining the exact tax benefit you'll get.
Owning a home is seen as a long-term action. Going through the whole home buying process is just not worth the time, effort and money if you only intend to settle in a particular location for a few months or a couple of years. If you're not yet decided on where to settle in for the long-term, it might be better for you to rent a home on a monthly or yearly basis.
Owning a home is suited for people who can commit to settle in a city or neighborhood over the long-term. If you are serious about buying your own home, it would be best to decide on where you want to live or re-locate first in the long run. - 23167
Long time home renters might feel uneasy about the idea of buying their own home. This is because buying a home is much more complicated than the renting process. Homebuyers are obliged to apply for home insurance, pay for monthly home maintenance costs, and settle real estate taxes and fees. It might seem daunting at first, but anyone can be more comfortable with the home buying process by knowing more about it.
Ask your realtor for information regarding all payments involving homes you are interested in. Ask about maintenance costs, average fess and taxes and organize all information in a spreadsheet. Organizing these data will give you a bird's eye view of the total and monthly costs you have to pay for. It is highly recommended that you use a digital spreadsheet so that you can easily compare different homes side by side.
Author Ilyce Glink of '100 Questions Every First-Time Home Buyer Should Ask' explains that buying a home also means you're buying into your local community, because you're responsible for local taxes, trash pickup and other services that may not accompany renting in the same area.
Next, you'll need to do some extensive research about tax benefits. Home ownership usually does give you several tax advantages over renting, but this will vary significantly depending on your current income and the total amount of real estate property tax you will be paying each year.
The idea here is to figure in all your deductions and current income level into the calculation of your tax benefits. You can ask an accountant or financial advisor for assistance in determining the exact tax benefit you'll get.
Owning a home is seen as a long-term action. Going through the whole home buying process is just not worth the time, effort and money if you only intend to settle in a particular location for a few months or a couple of years. If you're not yet decided on where to settle in for the long-term, it might be better for you to rent a home on a monthly or yearly basis.
Owning a home is suited for people who can commit to settle in a city or neighborhood over the long-term. If you are serious about buying your own home, it would be best to decide on where you want to live or re-locate first in the long run. - 23167
About the Author:
Realtor and Author Alexandria P. Anderson uses the Twin Cities real estate listings to help her realty clients find homes for sale in the Twin Cities of Minneapolis and St. Paul, Minnesota.
posted by X - Men @ 2:15 AM
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