{"id":69291,"date":"2017-12-06T17:57:05","date_gmt":"2017-12-06T22:57:05","guid":{"rendered":"https:\/\/stage.bhgrelife.com\/bhgrelife\/?p=69291"},"modified":"2017-12-06T17:57:05","modified_gmt":"2017-12-06T22:57:05","slug":"know-home-worth-buying","status":"publish","type":"post","link":"https:\/\/stage.bhgrelife.com\/bhgrelife\/know-home-worth-buying\/","title":{"rendered":"How to Know When a Home is Worth Buying"},"content":{"rendered":"

To buy a home, or to not buy a home. It\u2019s a common debate for many people. There\u2019s no denying that renting is basically paying for someone else\u2019s monthly mortgage without receiving any equity from the property, but that does not always mean that buying a home is the better option for each individual. Everyone\u2019s situation is different, and home buying can be expensive. People\u2019s lifestyles also change and their motives for wanting to buy a house are just as varied. Determining whether or not it\u2019s worth buying a home has a lot to do with individual specifics. It\u2019s highly recommended to speak with a real estate agent who can give you detailed real estate advice based on the information you provide. However, the general costs and rewards of home buying can be found right now to help steer you in the right direction.<\/p>\n

Maintenance Costs<\/h3>\n

When you buy a home, you are taking on the responsibility of maintenance costs. They\u2019re inevitable for all homeowners, but they can be significant depending on the specific property. Before buying a home, maintenance costs and unexpected repairs must be considered. It\u2019s recommended to hold back 1% of the home\u2019s value annually for maintenance and appliance replacement, but that does not cover unexpected repairs.<\/p>\n

Property Taxes<\/h3>\n

Property taxes can be a significant expense. The actual amount can fluctuate, and this must be considered before buying a home. There are a variety of factors to determine the amount of property taxes, such as the area, state, and local budget cuts, renovations, as well as many other things.<\/p>\n

House Insurance<\/h3>\n

Many mortgage loan lenders require homeowners to have house insurance. Unlike rental insurance, which covers possessions, homeowners\u2019 insurance covers both possessions and the cost of the property. Although it\u2019s an extra expense, it\u2019s beneficial to have even if it is not required. As for the cost of home insurance, it depends on the specifics, but you can get an estimate by dividing the home\u2019s value by 1000, and then multiplying that by 3.5 (HomeGuides<\/a>).<\/p>\n

Tax Deductibility<\/h3>\n

A benefit that comes when you buy a home is the tax deductibility of mortgage interest. This number is hard to estimate from a general standpoint because it greatly depends on your specific financial situation. However, owning a home can provide you more savings than if you were to rent, simply because of the tax deductible.<\/p>\n

Home\u2019s Value Appreciating<\/h3>\n

The appreciation of a home\u2019s value is generally high. However, this can change rather quickly depending on the housing market, as well as many other factors. ABC News<\/a> estimates home prices will appreciate around 3%, according to the historical average. The thing that many people forget is that as a home\u2019s value increases, the cost of maintenance and insurance does as well, due to inflation.<\/p>\n

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In terms of liquid money, home ownership won\u2019t bring you much of that. However, buying a home does have the potential to bring you a high return on investment. More importantly, your monthly bills go towards something you own. When renting, you\u2019re essentially paying someone else\u2019s mortgage without receiving any ownership. Many additional factors also need to be considered when determining if buying a home is worth it, such as whether you want to buy a home as an investment property, plan on flipping the house, or want to retire in it. The first step is to answer the inevitable question, \u201cCan I afford a home?\u201d and these general guidelines can help you determine that.<\/p>\n","protected":false},"excerpt":{"rendered":"