Buying a house is one of the largest financial decisions of your life. If you find yourself asking the question, should I rent or buy a house, know there are pros and cons to each option. There are plenty of excellent reasons to purchase a home, but if your priority is to grow your money, investing in the market is going to provide far more lucrative returns. Keep reading to see if buying a home is worth it for you.
Is it really worth it in the long run?
There are many people who think of buying a house a burden. According to them buying a house is not as convenient as renting a house. Well, to some extent it is true. If you are a person who has to move from places to places for the job, it is better to have rent a house than buying one altogether. On the other hand, there are some people who consider buying a house means you have achieved something and create a sense of satisfaction.
Let get down into the details:
- First things first, it is important that you are ready and stable enough to buy a home. Until you (or you and your spouse, if you are married) feel ready to commit to buying a home, you should not do so, no matter what your friends or family think.
- Do you have debt? If you are carrying large amounts of debt, you should not buy a home. Large amounts of debt can prevent you from paying your mortgage which will severely damage your credit and financial health.
- A house is a big responsibility that requires a lot of care and attention, especially if you want to maintain its value over time. Obviously, if you prefer working on your house or in the yard, go for it! To some, the inherent obligation in owning and maintaining a home means less time and energy for travel, working on hobbies or passions, or pursuing important business goals.
- If you have kids, chances are you want to settle down into a nice home in a quiet neighborhood. Your kids won’t want to move away from their school and friends, buying a home makes the most logical sense in this scenario. This isn’t to say that if you don’t have kids, you’re not ready to buy a house, not at all. If you do have kids that’s just an extra incentive for buying.
- Getting older in age is expensive, thanks to the skyrocketing cost of health care. Add in an increasingly imperiled social safety net, rising housing prices, and the likelihood that you’ll be on a fixed income with lower earnings potential, and you can see how not having to worry about paying rent every month would be beneficial. Yes, you’ll still pay property taxes, insurance, and other expenses related to upkeep, but it’s highly probable it’ll be less than what you’d pay in rent.
- You can deduct the interest you pay on your mortgage from your taxable income. New homeowners with recent home loans tend to get the greatest tax benefit. The newer the mortgage, the higher the interest payment each month which means greater tax breaks. Real estate taxes are deductible, providing great benefits to the homeowner. Homeowners often find that owning a home costs substantially less than renting a home.
Remember, there is no need for you to settle for anything less than the house of your dreams. It will all be depending on the circumstances you are living in. So, instead of worrying too much just think what is right at the given moment of time.