| Sure, it's tough to pull the trigger and buy a home, | | | | home improvement projects, an investment property, |
| especially as a first-time buyer. The big hit of covering | | | | or a big ticket item. |
| both a down payment and closing costs is enough to | | | | No more rental restrictions. |
| scare any prospective buyer into staying a renter. | | | | Owning means it's yours. You're free to do whatever |
| When you combine the fact that you'll be responsible | | | | you want to your new home (to a certain extent, of |
| for any fixes the house needs and that it's pretty | | | | course). Want to paint? Go ahead. Feeling the need to |
| difficult to just pick up and move, owning your own | | | | make those two rooms into one? Get the permits and |
| home gets more frightening by the minute. But fear not, | | | | go for it. Even better, owning a home means no noisy |
| the advantages of owning a home far outweigh the | | | | neighbors above you and no paper-thin walls which to |
| risks. So if you're already looking for a home, continue | | | | share all of your most intimate details to perfect |
| to do so. If you're a renter, it's time to reconsider. | | | | strangers through. |
| Benefits: | | | | Sweet & Stable |
| Save big on taxes. | | | | A fixed mortgage rate means you'll know exactly |
| When you own a home you'll have to pay a mortgage | | | | what your house payments are going to be up to 30 |
| and property taxes. It stinks, we know. However, the | | | | years from now. Even adjustable rate mortgages cap |
| interest on those bills can help. They're fully deductible | | | | out at a certain level. Knowing what thisundoubtedly |
| for both federal and state income taxes. The first few | | | | your biggest bill each monthamount will be well into the |
| years of your mortgage payments mostly go towards | | | | future can help you plan for further down the road. |
| interest, which means a big-time deduction for you. As | | | | Renters have no such luxury, as their rent canand |
| a plus, many times all costs associated with buying a | | | | usually doesincrease yearly. |
| homeincluding those involved with your loan application | | | | Risks: |
| and home appraisalare usually deductible. | | | | Appreciation isn't a guarantee |
| Equity is your friend | | | | Though history shows long-term homeowners routinely |
| Put simply, equity is the appreciation of your home's | | | | reap the benefits of appreciation and equity, the |
| worth over what you owe on it. That's money in your | | | | housing market canand hasslipped over the short term. |
| pocket; money you can't accumulate if you continue to | | | | Research the area in which you want to live and |
| rent. Stats show that homes have appreciated in value | | | | make sure any prospective neighborhoods show low |
| every year in the United States since 1968. That | | | | crime rates and growing value. |
| includes years of economic downturns and recessions. | | | | It isn't cheap |
| What's more, you can build equity my making | | | | As a general rule, mortgage payments are usually |
| improvements to your house that you can immediately | | | | more per month than rent. As an owner, you'll also be |
| enjoy, such as installing a pool or redoing a bathroom. | | | | responsible for maintenance and repairsno more |
| You'll reap those benefits further down the road when | | | | landlord to do that for you. |
| you sell your home. | | | | Menacing mortgage |
| Appreciate appreciation | | | | If for some reason you can't make your house |
| The appreciation of your home's worth is the single | | | | payments, it spells big-time trouble. Lenders could |
| biggest contributor to your equity. Homes are | | | | foreclose on you, meaning you could lose the home |
| considered a great investment over the long term due | | | | and all of the equity accumulated so far. Renters, on |
| to their outstanding historical track record. The value of | | | | the other hand, can usually just downsize to a smaller |
| a home typically appreciates at the rate of inflation, | | | | apartment if they find their monthly rent too much to |
| plus an additional 1 to 2 percentage points. In booming | | | | bear. |
| markets, such as the one experienced over the past | | | | Pick up and go? |
| few years, home values can grow at a much faster | | | | Not so. Owning a home generally means fewer |
| pacealmost 9.4 percent in 2004 alone. | | | | options when it comes to moving. Depending on the |
| Own to borrow | | | | state of the market, it could take quite a while to sell |
| Owning a home means more negotiating power for | | | | your house. Waiting for escrow to close could prolong |
| you. The more equity you have in your home, the | | | | the process. |
| easier it is to acquire a loan or a line of credit to fund | | | | |