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What Are the Advantages and Disadvantages to Buying Or Renting a Home?

Here is what we know; whether you decide to purchase or continue to rent a home; you must have a place to live. It seems a rather obvious statement to make, but is a bit more complicated than a mere proclamation. There are many factors involved in making this decision – some that are well-disguised. Let’s take a more in-depth look at these dynamics.

Renting: In most scenarios, a renter has signed a lease agreement that does not exceed a one-year term. At the end of that year, the renter and landlord must sign a new rental agreement where cost of rent and amenities can be discussed and negotiated. The renter has a decision at that time whether or not they choose to continue to live in that dwelling.

Buying: The contract you signed as a purchaser is with a mortgage company or home-loan maker. This contract is an agreement that you have borrowed a certain amount of money and will pay that money back within a certain amount of time at an established monthly payment amount. This contract is good for the lifetime of the loan, but nonetheless you are building equity in a piece of real property.

Renting: You may have certain amenities included with your rental agreement that make living there more enjoyable. For instance, perhaps your landlord takes care of the lawn and property maintenance or possibly you have access to a swimming pool or clubhouse that otherwise you would not have the ability to use.

Buying: Although it is more likely than not that you will be responsible for the care and maintenance of your own lawn and the equipment that goes with it, what is missed out upon when renting is the ability to change the scenery. You may wish to plant a tree or shrubs, which on rented property becomes the property of the landlord. Landscaping is a rewarding activity for a lot of property owners and something that may be frowned upon in a rental situation.

Renting: You may be living in a place where utilities are included in the monthly rent. This can be particularly good if you do not have the necessary fees to cover deposit costs, which are commonplace among gas and electric companies. But there are two factors to consider if this is part of your decision-making process. First, with the utilities included in monthly rent, you are missing an opportunity to further build your credit. Lastly, if there are problems with your electricity or gas lines, you may have to call the landlord first before calling the utility company as only the person whose name is on the account can discuss anything about the service at your location.

Buying: When you are purchasing your home, the utilities will be in your name thus cutting out the middleman should you need to have repairs made. Also, another aspect of owning a home in relation to the utilities is the issue of trust. You know when it was paid and exactly what your costs are.

Indeed, purchasing a home can be a daunting procedure, especially if it is your first time. You should be looking deeply into whether you have job stability where you are employed and whether or not you could make the monthly mortgage payments if you should lose that employment. According to Bryan O’Neal, a Chicago accountant, “you should have enough money in savings to afford, at the very least, six months of mortgage payments and ideally you should even have twelve.”

O’Neal says, “Having a savings account in place to cover closing costs, broker’s fees, the cost of hiring a property inspector, which is required by most lending institutions, and the cost of having the property surveyed is very important when planning to purchase a home…these things can sometimes put off the buying process for quite a long time if not thought of realistically.”

There are other issues that must be considered such as having the money to afford the actual move from one dwelling to the other, the need to purchase lawn care equipment, cleaning fees for your new home as well as the rented space you will be leaving, remodelling costs of your new home, furnishings, and security deposits on utilities.

It is best to have a plan in progress while making one of the biggest decisions of your life. Make a detailed and realistic record of what it takes to purchase a home. Speak with an accountant, friends, and family members for their input and above all else do not make a hasty, unplanned, and uninformed decision.

Home Improvement For Everlasting Homes

A home is a permanent abode set up by a couple starting a family. They earn and save to be able to build a house they can call their own or invest in an apartment close to the place of work. They furnish it to the best of their ability and hope everything lasts a long time. Unfortunately, nothing lasts forever and everything from gadgets to equipment begins to wear out. This necessitates periodic home improvements and renovations, which can be phased out over a period of time or carried out in a single session.

Home Improvement could include making new additions or trying to update the old accessories. The advancement of technology has led to new, more efficient energy saving equipment entering the markets from time to time. So many people choose to bear a one-time expense and install alternative energy sources or add energy savers like cooling and insulated sealing to prevent leakage of heat and cool air. Some people may choose to use water saving accessories in bathrooms and kitchens, while others may wish to create more space by remodeling a kitchen or a sitting room.

Often home improvements become a large-scale task involving a changed house design. This needs professional assistance from an interior designer, who can look at the existing facade and see how best to transform it into something that caters to the user’s present needs. It may mean including a part of the balcony into the living room, covering a part of the garden for an additional room, remodeling the kitchen to accommodate a table and chairs or a new cooking range, or renovating bathrooms as they may be looking old. Often old electrical wiring and plumbing can begin to have recurring problems, and instead of waiting till the whole system breaks down, these can be changed and better quality fittings installed. Many such decisions are taken when problems like leakages, seepage, breakage and damage take place. With such problems, repairs are inevitable and these prove to be a time to invest a little more in the home and give it an all-new look.

Repairs, renovations, remodeling and all types of home improvements are time consuming, but more importantly, major expenses. The cost could be small if minimal repairs are conducted and they could run into thousands if a major renovation is planned. It may be a good idea to browse online for an idea about the expenses likely to be incurred, as there are many sites that offer online assistance for such renovation jobs.