If you’re thinking of buying a
home, you can begin by taking a hard look at your finances.
For starters, you’ll need enough
cash for a
down
payment,
usually 10% to 20% of the purchase price.
Soon after, you’ll have to pay closing costs. And in
the long-term, you’ll owe monthly
mortgage
payments, home insurance, property taxes, and any home improvement
or maintenance expenses.
Faced with the hefty financial commitment
of buying a home, some people choose to rent instead. Your
personal and financial priorities will determine what’s
best for you.
Buying vs. renting
Advantages
of buying
Advantages
of renting
1.
You build equity in property, increasing your
net worth.
1. You
don’t need cash for a down payment.
2.
You can deduct mortgage interest and property
taxes on your tax return.
2. You
aren’t responsible for repairs and maintenance.
3.
You often get more living space for less money.
3. Heat
and some utilities are often included in price.
4.
You can borrow against your equity in the home.
4. You
don’t have to find a buyer if you want
to move.
