How to know if a home is worth purchasing
We are officially in the new year of 2018 and some may have made saving to buy a home part of their resolutions. For others, it is not always a clear decision whether they should buy or if they should rent. There is no question that when you rent you are essentially paying someone else’s mortgage, but that doesn’t always mean everyone should always buy. Everyone’s situation or desired lifestyle can vary making one a better fit than the other. If ever uncertain of the benefits for your situation, it is best to speak to a professional real estate agent such as myself to help you decide. In the meantime, here are some facts about a home purchase.
Property Tax – Property taxes can be a hefty expense. The actual amount can fluctuate each year and should be considered when you purchase a home. Many factors go into determining the amount such as the value of your home the town’s budget. Many towns do also offer an exemption savings for those who own their home and live in it as well.
Maintenance – When you purchase a home, you will assume the responsibility of the repairs and maintenance. It is a wise idea to budget approximately 1% of the home’s value annually for maintenance. This may not cover any larger or unexpected repairs.
Homeowner’s Insurance – Most lenders will require that the home have insurance. This policy will cover things directly related to the structure and often your possessions too. You can always shop around for different rates and sometimes bundle automobile coverage in for a discount.
Tax Deductibility – One great benefit to owning a home is deducting the mortgage interest. This number will vary from home to home but can be a substantial deduction making buying an attractive option.
Home Value Appreciation – The market can fluctuate, but over time in the long term the purchase of real estate is generally a good investment and can be part of your retirement wealth. Paying off your mortgage while your home value appreciates can oftentimes be a great road to building equity.