As you grow older, it is common to see your friends and colleagues invest their money into expensive cars and large homes. When you were right out of high school, life was probably more simple. You were able to tell yourself that you will be living cheaply because you are not making what you will be making when you are further along in your career path. However, seeing your peers with homes can start to get to you, especially if you have a growing family. Here are some reasons why you should resist the urge to buy a home you can’t afford and instead save up while living in Athens, OH, rental properties.
If you have researched buying a home, you probably know that a down payment is not a necessity. However, if you do not put 20 percent of the price of the home down up front, you will have to pay more over time in mortgage insurance. This means that your home could cost a lot more in the long run. It will already cost a lot more than the actual price in interest, depending on who you have finance your loan. Many financial advisors will tell you to buy a home that is equal to two years’ income or lower, so if you want to buy a home that is more than that, the best way to go about it is to have a hefty down payment saved up.
Owning a home can be fun because you can make changes to your house, but renting is a much better option if you are not in a stable place in your life. If you have hopes to change your career or you are unsure if your job will last till next month, then you will want to not be tied down to a home. You can lose a lot of money if you have your home for a very short time and the market turns after you bought it. If you have a rental, you could move around from place to place very easily, and this is a great option for students.
The worst part about owning a home is that it can become a money pit really fast. Not only do you have to keep the landscape up, which could take up your entire weekend just to keep it looking nice, but you have to pay for all your own repairs. If you are renting, you can call your landlord for several different things, such as if your toilet stops working or if there is a flood in your home. The landlord will foot the bill, as long as it isn’t from obvious damage that you or your family members did to the home. These repairs can really put you over your financial edge, especially if you bought a home that you couldn’t exactly afford anyway. So if you are considering buying a home, make sure you peruse Athens, OH, rental properties first. You may find a property that you fall in love with.