Since the mortgage had a meltdown, many people out there have become wary of the idea that homeownership is quite a lofty goal that all Americans should aspire to. There are certain pitfalls to purchasing a house that you cannot afford or that you do not really plan to keep very long. But for most of the people out there, owning real estate is still one of the most effective ways to build long term wealth.
The age-old question that persists in the minds of people is that, whether it is better to rent or buy a home. There really is not a right answer to this question. It actually depends on you and your situation.
Pros and cons of buying a house have been discussed in order to help you make a decision:
Pros of buying a house
The first and foremost thing is that everything in a new home is new. Starting from the Floors to the ceilings, windows, roof, or siding and the whole nine yards. This newness is enjoyable and fills one’s heart with joy. The new essence also helps in changing the overall environment of an individual and thus give him a feel of the new experience of life.
It sometimes also helps to forget the past sorrows and provides a person with a feeling of happiness as well as security. Thus, it can be considered as one of the biggest advantages of buying a new house. A new place lets a person widen his or her limits and friend circle.
Another added advantage of the new house is efficiency. In other words, with buying a new house, you will have to spend lesser on your bills like electricity as you will be own guidelines about how to consume various modes of energy.
Also, you will be getting better insulation when you buy a new house, which is a great example. This means that the smaller bills to heat and cool the house.
If you buy a new house, then you are supposed to get many flexibilities. But, certainly, this is not the case in a rented house. There are a lot of restrictions and limits and you cannot always do things as you like.
If cannot personalize the look of the place where you might not feel comfortable. So it is considered one of the most important benefits of owning a house.
Discounts and the Amenities:
You can avail of a number of discounts and various advantageous amenities when you are going to buy a new house. you can be provided with many options as well. But you have to remember that, a home-builder can never need you to use their preferred lender.
There is no harm in hearing about an offer from your builder’s preferred lender, but make sure that you compare the rates offered by them with the other lenders out there and always read the fine print.
Cons of buying a new house
For many people out there, it is not possible to afford to buy a house and thus one has to apply for a home loan. This home loan is to be paid by the buyer within a particular period of time. It causes a person to remain under debts and can cause him to cut off many expenses in order to pay back the home loan.
Moreover, the house loans are of big amounts and there is a possibility that the person keeps getting a much lesser salary due to the loan he has taken for buying the house.
You will be responsible for your maintenance:
When you own a house, you are the owner and you are one who is responsible for all the changes and the maintenance required to your house. You cannot complain to any and have to take care of all your problems on your own and have to handle it on your expenses.
For rented, you get the facility that you just have to complain about the problem you are facing and the landlord or the landlady will be there to hire a person for who to take care of the issues.
You should remember that the weather can get in the way of building a home. Also, there while buying a house is being talked about, then there is a big chance that the entire process gets delayed because of some formalities or other document related issues.
You might not meet the criteria:
This is often one of the biggest disadvantages associated with the buying of a new house and that is, you might not meet the required eligibility criteria. The reason may be bad credit history, low income or anything.
The above-written pros and cons can help you take that important decision of your life that is, whether to go for buying a house or not,