Can you AFFORD to be a homeowner? This was the topic yesterday in Part 1 .
Part of determining what you can Afford is getting a clear picture of what you are about to dive into!
Facts are facts. While they may vary from one area to another, what applies in Augusta Martinez GA will also apply in Chicago IL, with a little variation!
Let's take a good look at the facts.
What ARE the Advanges and Disadvantages to Home Ownership?
Some Obvious Advantages are ..... (not all apply to all people, remember, we are all different)
1. Tax Shelter advantages
2. Investment funds leveraging. Example: Invest 5% down . So, the homeowner only has 5% investment but they get to keep the appreciation on 100% of the value.
3. Forced Savings Plan. Even though it may be slow going, it is more savings that some would ever put away given the freedom to do so.
4. Allows Flexibility in personal tastes. You want to paint the living room highlighter Green--Go right ahead!
5. Pride in Ownership.
Home Ownership, unfortunately, has its DisAdvantages too.....
1. While you may be able to leverage your money by only sinking 5% into the home, THAT also means that you have aquired 95% of the purchase price in DEBT .
2. Future Home Values are Unpredictable. Nothing has proven that to us than the last two years!
3. Maintaining your new Investment is paramount. When the ceiling is wet after that big rain storm. It really doesnt matter what is in your bank account. You MUST , somehow, Repair that roof!
4. Costs of purchasing a home go beyond downpayment. There are closing costs, inspection costs, bank and attorney fees, Realtor fees .....etc.
5. Permant Home place. If you want to move in 6 months you have to figure out what to do with the home. You cant just "cancel the lease". So, it is less flexible in that manner.
Careful consideration and evaluation of the prospective Home Buyer's finances and lifestyle in an honest and forthright manner will allow the Home Buyer to discern whether he can Afford to Buy or Not.
As a Realtor it is part of my job to make sure my clients have ALL the facts. Obviously I cant make decisions for them, but I can, at least, make sure they have as many facts as possible so that THEY can make an Informed decision.
Home Ownership can be one of the most rewarding accomplishments of our lives ..... at the right time!
Later this week..... Part 3. AFter looking at affordability and Advantages and Disadvantages of Buying a Home today, Part 3 will cover Advantages and Disadvantages of RENTING.