The sooner you own, in theory, the faster you can save some money - perhaps toward your next home. When you pay rent, the money goes to your landlord, and that’s it. If you spend $1,000 per month on mortgage interest, at the end of the year, you can deduct $12,000 off your taxes. When you own a home, the interest portion of your monthly mortgage payment can be written off, dollar for dollar against your income. You might be better off avoiding those expenses by renting and saving for your long-term home.
#STRETCH ZONE ROYAL OAK TRIAL#
Some parts of homeownership are trial and error.
#STRETCH ZONE ROYAL OAK INSTALL#
And, you’ll surely make mistakes along the way by hiring the wrong contractor, making a poor landscaping decision, or mistakenly waiting to install the new AC condenser. You’ll likely want to paint, refinish the floors, or change the carpet before moving in. You’ll need to furnish your new home, purchase window coverings, and pay for landscaping improvements. Property taxes and mortgage payments aren’t the only expenses to owning. In essence, the starter home might help you purchase your dream home. If you can commit to at least five to seven years, there’s a chance you can come out well ahead.īy making improvements that add value, you can take the equity you’ve built and apply it as a down payment on the next home. Pro: Build equity soonerĪlthough not the guarantee it was a generation ago, odds are good that when you get into your first home, you can realize some equity. While staying put and continuing to rent may seem wasteful in the short term, it might be a more strategic move. Some prefer to pick one house for the long haul. Plus packing up and moving twice can be expensive and exhausting.
#STRETCH ZONE ROYAL OAK UPGRADE#
Think you’ll be ready to upgrade in just a few years? It might be more cost-effective to save and stretch for the larger house, so you can stay in it longer.Īlthough mortgage rates are low, there are costs associated with buying and selling a home: title insurance, inspections, brokerage commission, along with a handful of loan fees.
They might feel more grounded, and a part of a larger community.Īfter making a few cosmetic changes to make a home “theirs,” many new homeowners find they enjoy nesting at home, having friends over, and enjoying their own space. One surprise benefit that strikes most people is the stability they feel when they become homeowners. It exposes you to a new set of decisions and circumstances. It’s a personal, practical and financial decision, but here are some pros and cons of buying a starter home. They may wonder if it’s smarter to wait and save more money so they can buy a home that makes more long-term sense, or go the other route, buying a starter home and planning to stay in it for more years. Now, many people struggle to come up with the down payment for a first home.
As their families grew and careers advanced, they moved into bigger or better homes. When the Baby Boomer generation was venturing into adulthood, it was common to buy a “starter home” - a modest, small dwelling. Your parents’ rite of passage may not make sense for you.
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