Geraldo Mccalla: Renting has some advantages like you don't have to pay much for upkeep. But on the other hand you throw your money away on rent every month. When you pay a mortgage your investing your money. In some cases your rent money is as much as a mortgage payment. Of course that includes insurance too.
Renay Billiar: 2
Pei Heatherly: There will be some things about home ownership that will be a little more expensive than renting (closing costs, property taxes, maintenance, building inspection, etc.) You need to ask yourself a few questions before you sign on the dotted line (whether that be rental or buying)Do I want to be in this town long term? (if you're only planning to be there a year or two, renting might make more sense than hoping the real estate market is such that it will sell quickly when it comes moving time) If you plan on being there long term, then buying might be a more attractive option, the longer you pay on your mortgage the more equ! ity you build up for yourself (where as paying rent, no equity is ever built up)How financially stable am I? If you're just moving into a new town hoping to find work (or just starting a new job) you might want to start out renting until you know for sure that your job is going to be there for sure.Personally, my husband and I have rented our entire adult lives (before we met and after living together) We took possession July 3rd of our first home. Not only is it a wonderful feeling to come home and have it be ours, but the amount that we (collectively) have spent on rent would have paid for our house lock, stock and barrel probably twice over.As far as costs...in hard numbers (guesstimates)Down payment - generally 10% is advised, 5% is ok, more is AMAZING as it will work out cheaper for you in the long run, really. Some places talk about 0% down...but in the long term, that winds up being costly being as more of your buying cost is part of the mortgage, so you're paying on! a higher amount longer...this equates to more interest being ! paid.When you put in an offer they usually ask for some type of payment to "hold" the offer (generally the minimum is $1000) however this amount comes off the mortgage as soon as the deal closes (so if you bought the house at say 195,000...once the deal is sealed you're only paying 194,000...hope that makes sense)Home Inspection - $450 (well worth it, they can tell you if you're looking at buying something that's going to crash in on you anytime soon...can warn you of what will need to be done to the house, or even if the house is in great shape, a good inspector will give you hints on how to KEEP it in great shape!)Closing costs - $800...ours was lower because we were using the same lawyer as the sellers, otherwise I would say that you're looking at about $1000 - 1200.Property Taxes - You should know walking in what the property taxes are for the year in the house that you're looking at. Don't be afraid to ask if the taxes have been kept up, if they haven't then that stays! with the house (although the seller is responsible for them up to the date of possession, so they're usually paid by the lawyer direct from the profit of the house) This varies in amounts by area...places where there are a lot of amenities (ie. a city) property taxes will be higher than in a place with fewer amenities...this number is purely relative. We pay about $150. a month, I believe. (Some mortgage companies will collect your property taxes, making it part of the mortgage payment...then pay it to the municipality on your behalf)Home Owner's Insurance - about $130/month most mortgage companies won't grant a mortgage without complete coverage.If you decide to have a realtor work for you as a buyer, the realtor gets a percentage of what the house sells for. We didn't do this...but some do, for a variety of reasons, to know for sure if they're being treated fairly, getting the best deal, etc. Some assume that having someone not part of the sale...or on the payroll even, ! that knows the intricacies of real estate will give them a leg up...som! e cases it works...other cases, not so much, for us it wasn't worth the percentage of the house cost for it, being as we were pretty familiar already with the realtor selling the house.Broken down this way...I'll admit it looks daunting. Once it's completed though, month to month we're paying maybe $500 more a month than we were on rent...but the way we see it, we're paying that extra $500 a month to ourselves, rather than cheaper, but getting nothing out of it.You're welcome, if you'd like, to e-mail me off here with any questions. I know this is LONG and a lot of reading :)...Show more
Mauro Cowee: some people should really not buy a house. for example if there is any reason you don't pay income tax (disability) you can't write off the mortgage payment and that is a really big plus. also, your income is limited regarding repairs.as far as you buying a house...what's you credit score and income.and if you do buy the house, remember there is no landlord to call when! the pipes back up or any repairs are needed.a lot of people just don't want to be bothered with that and there are other people who are Handy at repairs and think of it as an investment.if you want to test the water. rent a home for a year and see what you are getting into.....Show more
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