Virginia Articles
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Buying vs Renting - Why Should I Consider Buying Instead of Continuing to Rent?
Most of the time buying is better than renting. Comparing buying and renting is a pretty complicated process. However, there are a few rules of thumb.
* If you are planning to move within two years, then rent because you may not be able to sell your home as quickly as you need to and you may have to take a loss.
* If your rent is very low, for example 2/3 or less than what a mortgage payment would be including taxes and insurance, then rent.
* If you don't expect to live more than the next fifteen years, then do not commit to buying a home. |
Should you decide to rent instead of buying a home, then make certain you save your money and invest it wisely for your retirement years.
Building Equity vs Throwing Money Away A myth people often hear that is it is better to buy than to throw money away on rent. Even if you own a home, you are going to throw money away on things that do not build equity such as closing costs, interest on your mortgage, property taxes, property insurance, and maintenance. Most likely, these costs will be less than you will spend on rent, so don't let that deter your dream of home ownership.
Buying is Better Than Renting for These Reasons
* You lock your payments for the next 15 or 30 years. Renters normally pay more each year. This means your housing costs will be stable while your income increases each over time.
* Freezing your monthly payments is where the real benefit is. Also, once the loan is paid off, you can stop making mortgage payments all together. This doesn't mean you will not have to pay for property taxes, insurance and maintenance, but the lion's share will not have to be paid every month.
* You will increase your net worth every year you own a home. Property values rise higher than interest bearing savings accounts, so your home is a great investment.
* Home ownership builds wealth in two ways: Through forced savings of paying down a mortgage and through appreciation. The sooner you buy, the quicker you will get into the appreciation game.
Also, the equity you build in your house is like an emergency savings account that you can tap into if you need to make home improvements, pay off other higher interest bills or in the case of unexpected expenses, such as medical costs. When your home sells, you walk away with the equity you have built up and this can be applied to the down payment on your next home. Compared to renting when you move, many times you don't even get your deposits back.
Once you have made that important decision to buy a home the folks at Nancy Chandler Associates can give you some ideas about preparing for your home purchase. The agents at Nancy Chandler Associates are among the best in the Hampton Roads and Tidewater area of Virginia. Whether you are buying a home or selling, the agents in this firm put you first. These professionals listen when you speak and will not steer you wrong. Contact Nancy Chandler Associates at (757) 436-5500. Nancy Chandler serves Norfolk, Chesapeake, Virginia Beach, Suffolk and Portsmouth in the Hampton Roads and Tidewater areas of Virginia.
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