If you've considered buying a home after renting an apartment or condo for several years, you will probably need to overcome several psychological barriers to become completely comfortable with the process.
Many potential homeowners simply don't take the first step towards home ownership because of the responsibilities associated with buying and owning a home. When you buy a home, you'll be responsible for more than your mortgage payment each month; home ownership involves paying maintenance costs, applying for homeowner's insurance, and paying taxes and fees. If you're interested in buying a condo, the process may be even more complicated. However,you can overcome this initial barrier that may be leaving you feeling overwhelmed - by understanding some basic principles of home buying.
Ask your realtor for information regarding all payments involving homes you are interested in. Ask about maintenance costs, average fess and taxes and organize all information in a spreadsheet. Organizing these data will give you a bird's eye view of the total and monthly costs you have to pay for. It is highly recommended that you use a digital spreadsheet so that you can easily compare different homes side by side.
Author Ilyce Glink of '100 Questions Every First-Time Home Buyer Should Ask' explains that buying a home also means you're buying into your local community, because you're responsible for local taxes, trash pickup and other services that may not accompany renting in the same area.
You would also need to research about the tax benefits that come along with owning a home. There are more tax advantages in owning a home than with renting - but the exact benefits depend on one's income and total real estate property tax due per year.
If you can work out your tax benefits to include all of your deductions and current income level, you'll have a fairly accurate idea of what the total tax benefit of owning a home will be for your particular situation. It may be a good idea to work with an accountant or financial advisor for assistance in this area.
Finally, think about your future for the long-term. Are you intent on staying in a specific neighborhood for the next five years? For the next ten years? Where do you see yourself living 30 years from now? One of the biggest psychological benefits of renting is the 'temporary' mentality and ease of moving. Since you can choose to rent a place on a month-to-month basis, sign a short term lease or just renew from year to year, there is a sense of freedom involved with renting.
If you don't want to settle in a specific neighborhood, then buying a home might not be for you. If you are seriously considering to buy a home, then you need to decide where to settle in and, if ever, when and where you want to relocate in the future. - 23309
Many potential homeowners simply don't take the first step towards home ownership because of the responsibilities associated with buying and owning a home. When you buy a home, you'll be responsible for more than your mortgage payment each month; home ownership involves paying maintenance costs, applying for homeowner's insurance, and paying taxes and fees. If you're interested in buying a condo, the process may be even more complicated. However,you can overcome this initial barrier that may be leaving you feeling overwhelmed - by understanding some basic principles of home buying.
Ask your realtor for information regarding all payments involving homes you are interested in. Ask about maintenance costs, average fess and taxes and organize all information in a spreadsheet. Organizing these data will give you a bird's eye view of the total and monthly costs you have to pay for. It is highly recommended that you use a digital spreadsheet so that you can easily compare different homes side by side.
Author Ilyce Glink of '100 Questions Every First-Time Home Buyer Should Ask' explains that buying a home also means you're buying into your local community, because you're responsible for local taxes, trash pickup and other services that may not accompany renting in the same area.
You would also need to research about the tax benefits that come along with owning a home. There are more tax advantages in owning a home than with renting - but the exact benefits depend on one's income and total real estate property tax due per year.
If you can work out your tax benefits to include all of your deductions and current income level, you'll have a fairly accurate idea of what the total tax benefit of owning a home will be for your particular situation. It may be a good idea to work with an accountant or financial advisor for assistance in this area.
Finally, think about your future for the long-term. Are you intent on staying in a specific neighborhood for the next five years? For the next ten years? Where do you see yourself living 30 years from now? One of the biggest psychological benefits of renting is the 'temporary' mentality and ease of moving. Since you can choose to rent a place on a month-to-month basis, sign a short term lease or just renew from year to year, there is a sense of freedom involved with renting.
If you don't want to settle in a specific neighborhood, then buying a home might not be for you. If you are seriously considering to buy a home, then you need to decide where to settle in and, if ever, when and where you want to relocate in the future. - 23309
About the Author:
About the Author: Alexandria P. Anderson is an Eden Prairie real estate agent that helps people to find and purchase Eden Prairie homes and properties in the Twin Cities of Minnesota.
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