Almost everyone in the world wants to have his own home where they can live peacefully and happily. Everyone wants to have it, but it is not the right move for everyone. A house does not come with a down payment only. It brings along a number of other expenses. Renting a house or buying a house both have their own pros and cons. So before deciding about buying or renting a house a few things should be considered. If you are planning to buy a house and are going meet a property dealer for that, wait and pay attention to this.
Are you financially strong enough to buy?
Usually people who change locations time to time tend to live on rent. That is easier and most recommended for them. Other than these if someone is building a house to live in, they will go for a rental until their dream is completely built. Some people go for rentals until they can save enough money for the down payment. Others might go for rent because of the location of the job or so. The most obvious reason people go for buying a house is to save money in the long run. If someone is planning to live permanently in a place the best option is to save enough money for the down payment and buy a house. One should always wait for the market to be stable to avoid spending extra money on the same house.
Owning a home means, there is going to a yearly tax that has to be paid in all circumstances. The sum of all property taxes round the year makes a significant figure. Tax rates on property varies for place to place and state to state. When the area is selected, make sure a mortgage calculator is used to estimate the cost in the area. This tells where we stand if we take a decision.
Like everything else, a house also needs protection. Insurance is a way to keep the house protected from the damage caused by fires, storms and burglary etc. Insurance also covers the expenses if someone in the family or other than the family gets injured at the property. If we plan to buy a house on home loan, homeowner insurance is necessary. It also costs a lot.
Maintenance and repair
Living as a tenant in a rental property we don’t realize how much maintenance cost the landlord has to pay to keep the house a liveable place. For example, in a year, there are a lot of things that need to be replaced or repaired without any delay. Doing all this along with handling other expenses is difficult. There can be major issues as well such as repairing the roof or the central heating system. In these cases, handsome amount of money is required.
Homeowner association fees
If you have just calculated the mortgage payment and think you can buy a house, don’t jump to conclusions in such a hurry and remember the homeowner association fees. This was covered as a renter but now you got to pay it yourself. This fee brings along perks like fitness centre, landscaping and pools etc.
After paying all the above-mentioned sum, comes the utility bills. No portion of it is going to be covered by the landlord, you must pay it all by yourself. Yearly sum of the electricity, gas, water, internet and cable bill costs a lot.
Add all of these expenses to the down payment of the house because these are the inevitable that come in package when buying a house.