Your Home—Owning vs. Renting
The Advantages of Buying a HomeOwning a home helps build a solid financial foundation for your marriage. Your once-a-month rent payment is no longer cash flowing into someone else’s pocket. With each mortgage payment you are "buying" something tangible, building up equity. The longer you own your home, the greater your equity. Homeownership makes a difference. When you live in a neighborhood or building that is primarily owner-occupied, your neighbors, like you, are willing to invest more of their time, money and efforts to improve their property.
Consequently, the value of your property increases. A home is an investment that helps you hedge against inflation. Although not all homes appreciate at the same rate and some years are better than others, real estate has historically kept pace with and has usually appreciated faster than inflation. Interest, property taxes and certain energy efficiency improvements can be deducted from your income tax.
A home of your own creates security. Unlike rent, which goes on forever, the mortgage on your home will be paid some day, providing you with rent-free living. Even if your first home isn’t your dream home, you’ll be working your way up to it when you buy any home. With appreciation and improvements, it may provide you with enough equity to make a down payment on your dream home later. Some things you might want to keep in mind when looking for a home include location, lifestyle and, of course, affordability.
In terms of location, you may want to be close to your job or other friends and family members. Even though you may not plan to add to your new family yet, you may want to consider the quality and availability of schools in the area, not just for your own future but for resale value as well. If moving into a newly developing area, you should check out future plans for your neighborhood specifically as well as the surrounding areas. If one or both of you are on the road quite a bit for work or pleasure, you may want to consider a home close to the airport or major highways.
Lifestyle is another determining factor in the type of home you purchase. If you have a very active lifestyle, either business or personal, you may want to consider a town home or condominium, which take less time for upkeep, leaving you with more free time to enjoy your new house. If you love to cook, you probably won’t want a home, no matter how beautiful, with a tiny kitchen. If you love to watch movies or play video games, a big family or entertainment room should probably be in your plans. If you love to be outdoors, you might want to consider a home with a big yard, a porch or a deck. Think about your hobbies and figure which type of home would best accommodate your likes and dislikes.
Your plans for the size of your future family should definitely come into play as well when thinking about buying your new home—the more bedrooms and bathrooms, the easier the house will accommodate the growth of your family. Think about the safety and quality of the neighborhood if you are planning to expand.
Whether it’s wood or brick, a condominium or single-family dwelling, the first home you buy together is a symbol of your commitment to each other.