Deciding to buy a house is a huge decision. You will need to be prepared both financially and mentally/emotionally to make the decision. However, buying a house is not for everyone. In some cases, renting a home is the better option. The key is: which is right for you?
Buying a house involves many things, not the least of which is financial issues. For starters, you will need to have a down payment in order to get a mortgage from a bank or lending institution. In most cases, you will need to come up with a 5% down payment in order to secure a mortgage. However, in some cases, it may be higher. Keep in mind too, the more money you “put down” on the house purchase, the less your mortgage will be. Also, it shows the bank that you are financially invested in the mortgage as well. If you are not able to make a 5% down payment for a house, then buying is most likely not going to be an option.
In this case, renting a house may need to be the option for you.In addition to the money required for the down payment, you will also need to be prepared to deal with the many utility bills that come with home ownership. Furthermore, repairs and maintenance are very important aspects of buying a house and you will need to be prepared to deal with them as they arise.
Finally, you will also need to be ready to financially handle the cost of taxes. Home ownership is not cheap and the municipal government requires you to pay taxes on you home. The amount for any given house will be readily available at the time of purchase so that you know what the ongoing costs will be.
If you are not prepared to deal with the financial responsibilities of home ownership, or if ongoing upkeep in the form of repairs and maintenance are not appealing to you (or your lifestyle), then perhaps renting a house is the better option for you. Buying a house takes a great deal of consideration.
Making the right choice involves long-term commitment so you will need to choose wisely.