So you’ve heard that buying your first home will be much more valuable than renting for the rest of your life. But is it really true? It depends…
If you have a good credit score, can manage your finances wisely month-to-month, and want to have your own plot of land, then yes–home ownership is something you should consider.
If you find yourself getting behind on payments frequently, or don’t like doing much “handy man” type of work around the house, then a rental may be your best bet.
See, home ownership is a lot more than monthly payments, gaining equity over time, and not having to sign a lease every year. There are a million details that accompany owning your first home such as yard work, re-painting a bedroom, contacting the city about neighborhood disturbances, and so forth. Some people even dwell on the negatives of owning a home, thinking it will financially eat them alive over time.
The truth is, owning a home is a lot like being in a long term committed relationship. You have to compromise. Some times you may question why you made the purchase in the first place, because of repairs, property taxes, or declining real estate values. But it is a fact that most home owners’ biggest investment in their entire life will be their home. Over time, you will gain equity as you pay down your mortgage, and home prices rise. And unless you treat the house like waste dump, it will reward you with a nice net gain when you eventually sell.
If you’re a first time home buyer and not sure where to start, the first step is to find a REALTOR® and meet with a lender to find out your buying power. Especially in this market. These are the main two people who will guide you through the process and make sure you have all the facts about your scenario. There are also many first time home buyer programs that you may be able to take advantage of. While many agents may claim to help buyers, a lot simply take you out to properties and ask if you want to write up any offers. This is not the kind of person you want guiding you through the biggest purchase of your life.
Think of it this way: if you were sick and needed an operation on your foot, would you want to be seen by a dentist? I think not. Make sure you interview your agent and lender to see if they can help educate you while also helping you make your first time buyer goals a reality.
Lastly, remember that owning your first home will be much different than renting from a landlord. All those problems that you called the maintenance staff to fix will now be your responsibility. But don’t let that scare you out of becoming a home owner. The benefits will be both financially and personally rewarding. And that’s why you should buy.
If you’ve always wanted to own a home, now is the time to buy. Contact me to setup a no cost, no obligation consultation on your buying power and options. Thanks for reading!
