Buying a home has its pros and cons. More often than not, people focus on its benefits and overlook its disadvantages. if you're having second thoughts about acquiring a house and lot, this post might help you decide whether to push through with the deal or not.
Debt - When most people buy a home, they put down a 20 percent down payment to reduce interest paid on the loan. Your down payment and reoccurring loan payments are certainly going to have a toll on your discretionary spending. Before you purchase or build a home, make sure you are ready for the debt and required loan payments for years to come. It’s not so different from renting, but that huge down payment could certainly sway one’s opinion.
Property Taxes - All property owners need to pay their property taxes twice a year, and as the markets continue to regain its position, taxes are expected to rise. Before you buy, look up your property taxes and those of your neighbors. As long as you have the address or PIN number, your local Secretary of Treasurer’s website should be able to help.
Repair Problems - When the hot water breaks, you can’t call your landlord to fix it. When you own a home, no matter what the issue is, you either fix it or pay someone to fix it. If you are a savvy DIYer, these types of issues may not bother you. After all, painting an interior room and fixing a clogged toilet are both easy projects, but ones that have to be completed nonetheless.
Little Flexibility - The golden rule of home buying is that you should plan on living in the home for at least five years. Otherwise, financially, it makes more sense to rent. On top of financial issues, once you buy a home, there is no turning back. If a loud neighbor moves in, there is nowhere to go. If your new job adds 45 minutes to your morning and evening commute, you better get used to traffic.