Home ownership means you no longer pay monthly rent for the roof over your head. When you leave, you can sell it to recoup the purchase price and earn any profit that you may have accumulated through your appreciation in value.
But don’t kid yourself. Home ownership comes with a slew of disadvantages, responsibilities, and downright headaches. So before going any further, consider whether your lifestyle and finances make home buying a smart move for you.
Except in a roaring real estate market, it usually doesn’t make sense to buy a home you’ll stay for less than three or four years, because the cost of the process of buying and selling your property means that you could lose money from your equity. On the other hand, you will not pay capital gain taxes if you’re in the property for at least of 2 years.
One key question is whether it costs more, on average, to rent or own in your area. The rule of thumb is that if you pay 33% in rent than you would for owning including the monthly mortgage, property taxes, and any homeowner’s fees, then it’s smarter to own a home then renting it.
As always, get your finances in order before committing to buy a home, and stay informed of all the options, alternatives and programs that will fit your needs.
Get help, and call a Realtor…Call me 714-963-7462. Leading your way home!