Everyone loves a brand new life to start in a brand new house. But be careful when you go for that financial scheme. Buying your own house is often referred to as having your dream come true. However if you are not ready to make that big financial commitment or if you are unaware of the consequences monetary wise you might not be so ready as you think to buy that house.
Buying a house is truly a big step. It is not only a monetary wise decision that you make in your life, but also an emotional decision. However it will make sense if you are a bit nervous about making a large purchasing as such and also taking on a responsibility financially and emotionally. For a considerable number of years to come, there will be a monthly payment and if you cannot make it, your spouse must be able to. Or at the beginning itself, both of you can make that commitment jointly. All these must be known and decided after talking to a mortgage advisor and you must bepsychologically ready and prepared to take on that challenge.
If you are not buying a house, the alternative will be renting a place. In that case you are giving money out each month to the building owner but not getting anything back from that. On the other hand, buying a new house is actually aninvestment you are making; a commitment of putting a huge amount of money at stake to have your own house. If you want to sell it and buy a new house in the future or move out that is possible; also whatever the mortgage payment is made each month, you own it at the end of the day. When your family becomes larger, you have kids and want more space etc. if you are at a rented place you will just have to move to another rented house. But if you are in your own home you can always sell it and put that money to buy a bigger house. Although there is no guarantee that the value of your house will go up for certain, most of the time it is the case.
Tax issues and advantages
Most of the time in the first several years of making payments on your mortgage a bigger chunk of that payment will be for the interest. In that case a percentage of it can be deducted from the taxes you pay. This will help to reduce the total amount you are paying as taxes at the end of each year. It is an added advantage of having your own house. Once you are finalizing the mortgage bond talk to your bank or financial institutions’mortgage brokers to have it setup properly.Getting married or buying a house, these are big decisions. Make sure they wisely made.