BUYER RESOURCES
Should you Buy or Rent a Home?
Is home ownership the right path for you? Should you rent instead? If you rent will you be jeopardizing the possibility of home ownership in the future due to rising real estate values? How fast will your family grow and how much space is needed for your family and their activities? How much money do you have to pay for housing? When is the best time to buy a house?
With the rising cost of home ownership today, combined with low interest rates, many first time buyers are challenged by the answers to these questions.
Buying and owning your own home more complicated than just having the money for a down payment and monthly mortgage payments. Owning a home requires a tremendous commitment of funds, time,and attention. For some people, owning is not the best or only way to have a comfortable and safe living environment.
ADVANTAGES of Renting a Home:
*You are excused from the bulk of home responsibilities:Grounds maintenance, appliance repairs, remodeling, home improvements, property taxes.
*Your rent may include such as: Pool, tennis court,
activity rooms, laundry facilities, security, parking.
*There is no down payment, only a security deposit.
Many monthly expenses are fixed (rent,utilities).
*You are not taking an equity risk.
*Moving is simple.
*It is easier.
The DISADVANTAGES of Renting a Home:
*No special tax deductions.
*No equity gains.
*Space and storage is usually less.
*Changes to accommodate you life are limited.
*Rents can rise with inflation or supply and demand.
*Restrictions on noise, pets or children.
The ADVANTAGES of Home Ownership:
*Increase in home value (equity), resulting a significant gain in net worth.
*Pride of ownership, and sense of status created both at home and in the community.
*Better credit ratings.
*The longer you live in a home the more equity you build that can be leverage using an emergency loan.
*Mortgage payments contribute to an investment.
*The interest paid on your loan is tax deductible.
*Ownership can contribute to security, especially in retirement years when income normally decreases.
*You can borrow against your equity, as the value of the home increases.
*More space may be available for family members and their activities.
*Freedom to make improvements and changes to the home and surroundings as desired w/exceptions.
*Home ownership can contribute to the general well-being and sense of "roots" of the family.
*Homeowners generally are concerned about community affairs and how they may affect their property.
The DISADVANTAGES of Home Ownership:
*Substantial down payment is needed.
* Substantial commitment in time, money, and emotions.
*Equity risk
*Financial resources may become limited or reduced for other purchases or activities.
*Maintenance and repairs could be costly.
*Insurance.
*Budgeting is cumbersome and a must in preparation for maintenance, repairs, home improvements, etc.
*Increasing property taxes.
*Moving and furnishing expences.
*Decreased security.
*Shifts in the neighborhood could drastically affect ones lifestyle.
*Unexpected loss of income due to job loss or unemployment could limit money available for home ownership costs.
Define your values !
Decisions, decisions. What is important to you?
Buying a home commits you to a long-term relationship with a mortgage and requires a considerable amount of time and energy that most homeowners will tell you becomes second nature. American consumers spend from 21% to 54% of family income on their housing.
For thoes who wish to proceed there are some inviting incentives for first time buyers!
* Interest rates are at record low levels. TAX CREDIT:
* There is now aliable up to an $8,000.00 tax credit.
*Many forclosure properties are aviable at below market prices. RENT vs BUY:
ALASKA
