Buying a home is a major decision. There comes a point when you have to think long and hard about your future living space. How long do you want to continue renting? Is it time to consider buying a home? Depending on your current situation both options have their advantages and disadvantages.
First let’s take a look at the advantages of buying a home:
*A great investment. If you have read any of David Bach’s books in the Finish Rich series, you will be smart to take note that one of the wisest investments you will ever make is to purchase real estate. A home builds equity over time as you pay your mortgage. This means that you have ownership of the home as you complete mortgage payments.
*Tax rebates and deductions. First-time home buyers get refunds from the government to assist them with the costs of purchasing a home. The First-Time Home Buyers’ Tax Credit (HBTC) is non-refundable, and is based on $5,000 for those who acquire a qualifying home after Jan. 27, 2009. It is calculated by multiplying the lowest personal income tax rate for the year by $5,000. For more details on this please refer to the HBTC guidelines. There are also tax rebates on home renovations, energy savings home improvements, and land transfer tax credits.
*Stable monthly costs. Owning a home gives you more control over your costs with fixed-mortgage payments. Sometimes the mortgage could even be lower than the cost to rent. Your principal and interest payments would stay the same every year, unlike rent which could go up every time you sign a new lease.
*Freedom to Renovate. If you own your own home you are free to renovate and move things around according to your personal taste. You can play around with your living space to suit your lifestyle without the need to ask for permission from your landlord. You can paint your walls or dig a pond in your backyard. You can express yourself in your own home.
* Community. Buying a home gives you the sense of security and stability of being a part of a community. Unlike renting, you feel a certain amount of commitment to neighbors and community. This is the reason why people carefully choose the areas where they buy their homes. They look for a community that they like, and envision to love because they are going to be part of that community for a long time.
When you buy a home you have responsibilities for its upkeep and maintenance. You do this because you love your home and want to live a good quality of life, and also because a well-maintained home raises the value of the property. Some people regard these responsibilities as “disadvantages” to owning a home. It all depends on how you view things, but these responsibilities include: liability for accidents and injuries on your property; liability for damage caused to your neighbor’s property if it came from yours; mortgage needs to be paid even if you are having financial problems; equity rates may vary; you need to pay property taxes.
Also, unlike renting when you can pack up and leave anytime, you cannot just pack and move everything when you own a house.
Find all Brampton houses for sale here. If selling, you can get full service and pay low real estate commissions at the same time.
