Renting vs Owning a Home

After many years of being renters we were discussing the possibility of once more entering the world of home ownership   Renting in the long term is paying someone else’s mortgage and helping them reach their financial goals.

There is also the lack of freedom to choose decorating or landscaping ideas, and a person never can be certain that the property owner may choose to sell the home at any given time. So we felt it was time to explore the feasibility of home ownership once more.

When you are buying your own home you feel you have some control over your  life and cannot be asked to move without warning just as you are getting comfortably settled.

With that in mind we explored our options within the parameters of our budget. Townhouse, condo or a house, would a new build, or an existing residence, which be our best choice. Each option has it’s benefits and of course challenges so which would be the better choice for our family. A condo might be too small and confining for our growing family, and there is the strata fees to be taken into account, The townhouse although a bit larger has the issue of little yard space and proximity to your neighbor  The next step up could be a home built on the smaller lot or a custom home built on a larger plot of land.

In the past we envisioned a home that would encompass all  of our creative ideas.  We had  blueprints drawn up by an architect, our dream home, five bedrooms, four and a half baths, two story Colonial with a walkout basement.

The prospect of building that once in a lifetime home was extremely appealing but budget as a major factor.

So off to see our friendly banker or a mortgage broker is always another route to take. Once we have the monetary concerns settled we could consult a realtor and talk to a general contractor or custom home builder to discuss price and options and compare.

Being able to have control over everything from the colors, counter tops, cabinets, light fixtures, and whether hardwood, carpeting or tile would be a good choice. Although very exciting it can be very stressful and overwhelming to take on such a huge task. With the right professional working with you this will proceed much smoother as they have the knowledge and experience to guide us.

We  will ask for referrals and for homes or any developments locally that they have been involved with.

A search of any available bare land will be one of the first steps and comparing the costs of purchasing a spec home over going with the custom build, it will be an interesting experience no matter what the outcome.

Whatever choice we decide on it will be nice to be a home owner once again.

Is home ownership right for you?

Recently I had a chat with a friend. We were talking about owning a home. She was mentioning a friend who was talking about trying to find a home to buy. But she wasn’t convinced that her friend should own a home.

So our conversation turned to the duties as a homeowner.

The first one is obviously financial. What is your budget when it comes to owning a home? Here’s a nice planner. Do you have enough money to pay for a good size down payment on the new home? If not you’ll have to worry about our next issue.

Are you going to be able to afford the monthly mortgage payments? I talk to many friends who are always stressed about the mortgage payments and other costs that we incur on a daily basis. If you have a family it costs a lot to feed and pay for entertainment.

The next issue thing to think about when it comes to home ownership is up keep. From cleaning the house to gardening, a lot of your time can be spend cleaning the home and maintaining it’s appearance. Do you have a lot of hobbies? Do you like to do the things above? If you answered yes to both questions, you may struggle to find time. One option is to hire a gardener and maid. But that will add to your costs.

Lastly, no matter what home you buy, you’re going to want to change things. Each room will require a lot of changes. This will require money no matter if you hire a contractor or do it yourself. Obviously if you do it yourself your time will be required to do those things. And one thing many people don’t think about is that your home will be under construction a lot. Are you able to live in a home that is always being worked on?

Just because society tells you you must own a home, you really need to think about the questions above before you start looking for a home.