Think You Are Ready to Own a Home?

Thinking

Everyone wants a home of their own – it’s the American dream. Enjoy the freedom to express yourself in your own home, without the snooping landlords. You can do just about anything you want in, on, and in your own owned home.  Take my home for example.  I am married to an interior designer who cannot live with white walls.  Therefore, our kitchen walls are green and our kitchen cabinets are now black.  Do you think that a landlord would allow us to do this at our own will?  Not a chance.

But before you go jumping in, ask yourself some questions:  Are you ready to settle down and take on the financial responsibilities and lifestyle changes that come with homeownership? Or might you be better off renting? Spend some time evaluating your near-term goals. Might a better job opportunity send you packing to another city or state? Is your income likely to remain the same, increase, or could it decrease and jeopardize your ability to meet your monthly housing costs?

Homeownership is best viewed as a long[er]-term commitment because selling a house is a costly and often time-consuming undertaking. The serious homebuyer should plan on staying in the house for at least two years – though that’s a minimum.  Typically, the better rule of thumb is to have a goal of owning the same house for at least five years. It’s simply not profitable and it could end up being quite costly to buy and then sell your home less than two years. Even if a booming housing market allowed you to turn a nice profit, the proceeds would be subject to capital gains taxes.

Making the transition from renting to homeownership is exciting, but yet challenging.  As the new owner of your very own home, you are now the “landlord” (of yourself!)  This means that when that old copper pipe breaks, it’s up to you as the the homeowner, to either personally fix the problem or hire a contractor. The same remains for maintenance and overall property upkeep.

But for those who’re willing to take on the challenge, the benefits are many. Homeownership is a form of forced savings.  With the deduction of mortgage interest and property taxes from your federal and state income taxes, you will be paying less in those cumulative income taxes or getting a larger tax refund. Additionally, the accumulating equity in the property can act as a savings account that you can access when you are ready to sell.

 

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The information contained herein has been provided by San Diego Board of REALTORS®. This information is from sources deemed reliable but not guaranteed by San Diego Board of REALTORS®. The information is for consumers' personal, non-commerical use, and may not be used for any purpose other than identifying properties which consumers may be interested in purchasing.

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