Welcome, Home Buyers!
This is part 1 of the 10 part Better Spending Home buyers guide. We will try to get you familiarized with the ins and outs of the home buying experience. For many of us buying real estate can be the most expensive purchase we make in our entire lifetime. Its important that we all get off on a solid start.
Our main goal here at better-spending is to help you make smarter financial habits. You don’t always have to increase your income to escape living paycheck to paycheck. Just make every decision count!-Jem Volo
Whether its a ceiling light that needs to be fixed, a wooden deck the needs to be sanded, or trees that need pruning – home ownership, no doubt comes with responsibilities and chores.
Lets face it , when you buy a home, you’re committing more than just your money. You are committing your time and energy, too. Still, ask them and you’ll find most homeowners wouldn’t trade their home for anything.
Having A Place To Call Your Own
Owning a home does bring a sense of emotional fulfillment. It is for many of us a gateway to an improved quality of lifestyle.
- Creates a sense of belonging
- makes you feel like a contributing factor of the community
- Gives you a sense of stability and security
- Lets you remodel, landscape, and decorate to your liking.
Building Personal Wealth
Owning a home can be a very smart financial move. When you pay rent, the money is essentially gone. When you pay your mortgage, the money comes back to you in different ways:
- The portion of the mortgage payment that goes towards the principal, that stays in your own pocket. It counts towards the equity you have in your home.
- the portion of your mortgage payment that goes towards interest and property taxes, that’s a tax deductible and you’ll get a percentage of that back when you file your taxes.
Rent vs. Buying
The obvious advantage of buying verses renting is owning the home at the end of the term period. One thing to consider is, howl long do you plan on living in that home. If it is less than five years you may want to consider renting instead.
Use a Rent vs. Buy calculator to determine if buying makes sense financially. We like to use this calculator on nerd wallet, take a look.
Stay tuned, this is only part 1 of our 10 part series. Tomorrow we will cover the age old question..“where should I start?” we will break it down into a simple easy to follow do’s and don’ts list. So, stick around!