Is home ownership the right path for you? Should you rent instead? How fast will your family grow and how much space is needed for your family and their activities? How much money do you have to pay for housing? When is the best time to buy a house?

Buying and owning your own home is more complicated than just having the money for the down payment and monthly mortgage payments. Owning a home requires a tremendous commitment of funds, time, and attention

The following topics should help make your decision a little easier.

•Advantages and disadvantages of renting a home
•Advantages and disadvantages of buying a home
•Defining your values
•Are you ready for home ownership

For some, renting can be the best option. Considering the high cost of a down payment on a home, financial considerations are of top priority. Renting can be viewed as a temporary solution while you plan your future.

•You are excused from the bulk of home ownership responsibilities such as

oLandscaping
oSnow removal
oTrash & recycling pickup
oAppliance repairs
oRemodeling
oHome Improvements
oProperty taxes

•You are excused from the bulk of home ownership responsibilities such as

oPool
oTennis courts
oSocial/activity rooms
oLaundry facilities
oSecurity
oParking

•There is no large down payment, only a security deposit.
•Many of your monthly expenditures (rent, utilities) are fixed making     budgeting easy.
•Close proximity of neighbors often create a sense of security.
•If you do not like where you live, moving is relatively simple.
•It is easier, especially if you travel/commute often.

•No special tax deductions, no equity gains in the rising value of property.
•Space and storage is usually less than a home.
•Changes to accommodate your life or growing family cannot be made or     are limited in    scope .
•Rents can rise with inflation and or supply and demand in the rental     market.
•You will probably have restrictions on noise level, pet ownership, or     children.

•The home may increase in value, resulting in a significant gain in net     worth.
•Home ownership and the sense of status created both at home and in     the community.
•Homeowner's tend to have better credit ratings.
•The longer you live in a home, the more equity you build that can be     leveraged for the future.
•Mortgage payments contribute to an investment, particularly if the     property increases in value over a period of years.
•If you have a fixed loan, your payment will remain relatively constant for    the life of the loan.
•The interest paid on your loan and taxes are legitimate income tax     deductions.
•Ownership may contribute to security, especially in retirement years     when income normally decreases.
•A homeowner can borrow against his/her equity, as the value of the    home increases.
•More space may be available for family members and their activities.
•As a homeowner you have the freedom to make improvements and    changes to the home and surroundings as desired
•Home ownership can contribute to the general well-being and sense of   "roots" of the family,.
•Homeowners generally are concerned about community affairs and how    they may affect their property

•A substantial down payment is needed.
•Owning a home requires a substantial commitment in time, emotions, and    money.
•The initial expense of buying a home, financial resources may be limited    or reduced for other purchases or activities.
•Maintenance and repairs are inevitable and could be costly.
•Budgeting is cumbersome and a must in preparation for maintenance,    repairs, home improvements, and/or home ownership/association dues.
•Depending on where you live property taxes could increase.
•The cost of buying a home could also include the cost of moving into it    and furnishing it.
•Security is an issue if you are not home often due to travel.
•Unexpected loss of income due to job termination or unemployment may    limit money available for home ownership costs

•What type of living situation would make you feel the best about     yourself?
•Do you have certain neighborhood preferences that would be limited by    either decision?
•Which decision would strap you the most financially?
•If you have family (married, children) which decision would impact their    lives?
•What are your lifestyle requirements?

oDo you like to entertain?
oDo you want a garage for the cold months?
oWhat is the distance you would have to travel to work, school, church, shopping?
oHow important is privacy?
oHow

The Neighborhood should be a major part of your decision. Here's a list of things to check:

•Its proximity to:

oFactories
oTrains
o Airports
oTraffic
oHighways
oSanitation

 

•Appearance
•Schools
•Whether the neighborhood is appreciating or depreciating in value.
•Safety and security.

Accessibility, like driving through traffic to get to shopping, schools or work can be a real issue over time. Consider the convenience of your desired neighborhood in relationship to:

•Work
•Shopping areas
•Schools
•Entertainment and lifestyle activities
•Places of worship
•Condition of the roads
•Available public transportation.

Community Amenities, you will want to use the local resources to enhance your life. Consider looking into the following:

•Police
•Fire stations
•Health facilities
•Sanitation services
•After school activities
•Recreational facilities, such as parks, golf courses, hiking trails, etc.

 

If you are buying consider what the neighborhood offers for you and your particular lifestyle today and in the future. This might be a good time to evaluate your particular needs and how they might affect the potential to sell the home in the future Buying a house commits you to a long-term relationship with a mortgage and requires a considerable amount of time and energy that most homeowner will tell you becomes second nature. American consumers spend from 21% to 54% of family income on their housing. How much each family spends on housing depends on many factors.

•The amount of take-home pay the family can reasonably expect.
•The family's living costs and other debt payments.
•The total amount of housing expenses, including: taxes, insurance,     energy, furnishings, maintenance, and mortgage payments