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.
Property taxes
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.
Homeowner insurance
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.
Utility bills
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.
