Can you really own a home for less than renting? YES! But keep in mind that there are many other costs than just your montly payment.
1. Maintenance Costs. Homes need to have routine & preventative maintenance performed in order to keep them in good condition. This results in annual expenditures you would not have while renting. Includes painting inside and out, servicing your mechanicals, caulking, etc.
2. In order to have the best chance of keeping a home’s value from depreciating, you will want to consider potential updates.
3. Repairs will be your responsibility when you own a home and you can often expect an unexpected repair every year.
4. The first few years of paying on your loan will mostly be paying interest and the principle amount of your loan will take time to be reduced. Any amount you put toward your monthly payment above the minimum will also help lower your balance as well as reduce interest over the life of the loan.
5. Your home owners insurance policy can go up if you make claims, so be cautious as to what you claim or repair on your own.
For more information on what to expect and plan for when preparing to own a home, give me a call at 317-292-3882 and I’d be happy to set up a time to meet and answer all your questions!
By Sarah ODonnell, talktotucker.com/sarah.odonnell