Although, owning a home, of your own, is often considered, a basic component, of the so – called, American Dream, it may not be, for everyone, for a wide variety of reasons! Are you the right person, to be a homeowner, or, better suited, to rent? Would home ownership, be beneficial to you, personally, financially, emotionally, etc, or, would you be overwhelmed, and stressed, by some of the necessary responsibilities? How about the financial aspects, and related, stresses, and strains? With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, some of the relevant factors, involved, and how, it is wise, to proceed, with one’s eyes – wide – open.
1. Financial considerations: How much have you saved, to date, and are you comfortable, and effective, and saving, on a consistent, regular basis? Are you confident in your personal job security, and do you, anticipate, a consistent growth, in your earning power? Do you truly, know, and understand, what will be needed, in terms of the necessary, down – payment, as well as regular monthly installments? What if there are some unanticipated expenses? Will you be prepared, to respond, in a seamless manner, which will minimize stress, etc?
2. Maintenance: When you own, you are responsible for the maintenance, and upkeep, of the interior and exterior of the property, and house, itself. Will you feel comfortable, either doing this, yourself, or have the financial ability, to have someone, qualified, able, and capable, to do so, for you, when needed? Others prefer to rent, because, either they don’t want or feel comfortable with these responsibilities, or are overwhelmed, by them?
3. Pay rent to others, versus, investing in yourself: Some may consider it, somewhat, obvious, that it is, financially, beneficial, to own, and have, at least, a considerable amount of your monthly payments, build equity, as opposed to renting. However, others, despite this, lack the confidence, in knowing their future plans, or fear, the ramifications, of perceived, job insecurity! Where do you fall, along this spectrum?
4. How long do you plan on living there?: If someone anticipates, or is uncertain of, their future plans, in terms of, where they will work, or what they might prefer, renting may be an option, to seriously consider. However, others believe, since, historically, real estate has been, a good hedge, against economic inflation, etc, it might make sense, to purchase, instead!
The reality is, there is no such thing, as one – size – fits – all, when it comes to deciding whether owning or renting, is best, for them. Since, for most of us, our house represents our single – largest, financial asset, doesn’t it make sense, to do, some, quality, well – considered, homework?
