Buying a home is seen as a great way to build wealth. However, like any investment you make, certain things will affect its value (e.g., economy, maintenance, environment, interior, exterior). These factors will also affect anyone who’s renting a home since the landlord may pass the price on to them.
What Buying a Home Means
When you buy a home there are many things you must take into consideration. It’s important to stop and think about these things before you sign any contracts. Doing so is in your best interest because once you sign the contract it’s too late to look back.
Tax Benefits
There are certain tax benefits homeowners benefit from. For instance, with the home mortgage deduction, you won’t pay any expenses out-of-pocket during the loan’s early life as long as you itemize your deductions. This is different from renting because then you don’t receive any mortgage tax deductions at all.
Maintaining and Repairing Your Home
When you buy a home you’re responsible for any maintenance and routine upkeep. Unfortunately, this can be quite costly, and just because you undertake a renovation project it doesn’t mean that you’ll increase your home’s value or make your money back.
Time Commitment
Many people should stick to renting due to the time they’d have to invest in taking care of a home. Whether it’s because you want to have your evenings to yourself, you work long hours, or you like to travel, owning a home may not be right for you. This is because you’ll always find something that you want or need to take care of. Not only are there the little things that you must do, but there are also many unforeseen things that will pop up occasionally.
Buying a Home vs. Renting
Whether you choose to buy a home or continue renting depends a lot on your financial situation and your vision for the future. What’s right for your friend isn’t necessarily what’s right for you. In the past, there were a lot of things that prevented people from owning land (e.g., race, ethnicity, marital status), which makes many people much more land-hungry today. Now the only thing of importance is being able to make your monthly payments on time.
Before you decide on what’s right for you it’s important to weigh any risks involved. If you decide to get a mortgage you’ll need to have a lot of financial leverage. Of course, when the price of houses goes up you’ll make great gains. The opposite is also true though: When housing prices go down you’ll lose a lot of money. This is why during the subprime meltdown many Americans watched as their mortgages tanked. So, if you decide to buy a house, you may want to wait until the prices make sense to you.
Even when you consider the risks, expenses, and additional chores involved with buying a home you may still find it’s more worthwhile than renting. Owning a home allows you to create the type of residence you want and it also provides stability in raising your children. This is the emotional side of the decision of whether to rent or buy.
Buying a Home Today
Buying a home may allow you to build up equality if you’re willing to invest in it. One of the best investments you can make in your home is installing synthetic turf. Doing so not only means better-looking grass but it’ll require a lot less maintenance too. If you’re interested in installing this grass around your home in Tampa, FL makes sure you contact us at Turf Pro Synthetics today.
Picture Credit: Crello