For most people, owning a home is something to strive for. Being able to have a place to call your own is certainly a great goal to have. Making a home purchase is a huge decision, so you will want to make sure buying a home is the right decision for you. Let’s look at a few pros and cons of buying a home to help you decide.
Pros of Buying a Home
Owning a home is one of the best ways to build equity. Each time you make a mortgage payment you are building more equity. Your home’s value is also likely to appreciate, which will also increase your equity.
Unlike renting, you have the freedom to make changes to your home. You no longer have a landlord to worry about. You can paint the walls any color you would like or renovate different areas of your house. You can make your new home your own!
Stable Monthly Payments
Rent prices continue to be on the rise so what you are paying for rent next year may be higher than what you currently pay. One benefit of buying a home is having a consistent payment. If you have a fixed mortgage, what you pay for your monthly principal and interest will remain the same. This certainly makes it easier to budget since you won’t have to worry about a fluctuating monthly payment.
Cons of Buying a House
The upfront costs of buying a home can be pricey. To buy a home, you will need to make a down payment. You also have to consider closing costs. You’ll want to make sure you have enough money saved up to cover these costs. However, you don’t want to empty your entire savings because other expenses will come up that we will talk about in the next section.
Making sure you are doing regular maintenance on your home is important to keep it in good shape. Not only does this require your time, but it will also cost you money. If your heater breaks or you have a leaky roof, these repairs are going to come out of your pocket. Having an emergency fund is a good way to make sure you can cover these expenses as they come up. Also, for first-time homeowners, you may need to buy the equipment you didn’t need when renting. You will need a lawnmower to mow the lawn and a snowblower for the winter months if you prefer that to shoveling.
Difficult to Move
Buying a home is a great idea if you are planning on staying in the same area for years to come. However, if you don’t see yourself remaining in the same spot for a while you will want to rent. When you own a home, it’s not so easy to pick up and move elsewhere. Selling a home can take some time depending on the market and it can also be costly. So, if you enjoy the freedom of being able to move around easily, you may want to continue to rent until you are ready to settle down in one area.
Are you ready to buy a home? Get help from one of our fantastic agents! Visit our website to find an agent that’s right for you!
First Weber sells real estate throughout Wisconsin: Metro Milwaukee and Southeastern WI, South Central Wisconsin/Greater Madison, Central Wisconsin, Northeast Wisconsin, Western WI, parts of MN, Michigan’s UP and Wisconsin’s great Northwoods. You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com