While everyone talks about home ownership, and while there is no question that owning is better than not owning (explained below), there are some exceptions.
Some advantages of owning a home:
1) The pride of ownership - this is huge & irreplaceable
2) Tax benefits - Uncle Sam gives us most of us money back by allowing us to write off interest and property taxes
3) Appreciation in values - think of this benefit as a long term equity builder
4) The ability to live your lifestyle - home with a garden, townhouse with no outside worries
5) An advantage, atleast at this point - $8,000 credit if you qualify (many first time buyers do)
6) A large selection available due to increased inventories
7) Leveraging your money smartly is a great benefit
Some disadvantages:
1) Doesn't allow flexibility. Not easy to just pack up and move
2) The trouble of ongoing maintenance - takes away worry free lifestyle
So should you buy or not? Depends upon your situation. Apart from the advantages and disadvantages mentioned, here are few other questions you must ask:
1) Can I afford the monthly payments?
2) Do I have extra money for emergency repairs?
3) Is there an anticipated move within next 2 to 3 years?
4) Is there an expected change in my job?
5) Am I doing this to impress others or for my own needs?
Some suggestions:
1) Don't buy larger than you need or expensive than you can afford.
2) Know that buying for long term is the best thing you can do for your future savings!
3) Why waste on rent when you can own and build equity long term?
4) If possible, pay extra principal every month to payoff your loan sooner.
5) Don't use all of your equity for wrong purposes.
Good luck with the purchase of your home.
Sanjeev Aneja, CRS, Broker/Owner
On Track Realty, Edison, NJ
732.494.2211
www.ontrackrealty.com
