Andrews Air Force Base Housing: Buying Over Renting

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Published: 17th June 2015
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Owning a home is considered as one of the biggest personal assets. However, renting is only beneficial depending on certain factors. Purchasing a property might not be as simple as it sounds especially when dealing with these increased home prices, home interest rates and the EMIs. Either way we can’t deny the long term benefits of getting your own house especially if you've fully paid the residence.

Renting has its own benefits and drawbacks. Although it can be a better choice financially and for those whose work involves moving around from one city to another, it can only accommodate you on a short term basis and based on the contract. In renting, there is fewer duties for maintenance and repair. You just have to pay a refundable amount rather than a huge deposit. Aside from these rewards, renting has the following shortcomings:

• You cannot avail special tax advantages.

• No benefits from appreciation of real estate prices.

• Higher rent for smaller space.

• Less value.

• No authorization to create appealing enhancements.

• Rules/restrictions must be followed.

• Rent to be impacted by inflation.

Alternatively, here are the many benefits of purchasing a home:

• Investing in a property forms an asset and will be a lasting investment.

• It induces compulsory savings, boosts pride and status, inculcates a sense of bonding and grounding.

• It allows you to make permissible changes and enhancements.

• You can avail greater tax benefits

• Avail advantages from the fluctuating rates.

• Gives a sense of security during post-retirement years.

• You can avail profit by selling your home.

• Increased net worth after the complete loan payment.

Reminders Before Buying a Home

So if you are determined to buy a home, here are a few notes you might want to remember before signing the deal.

• Consider critical factors like the city, area, period you intend to stay, family needs, real estate market and the prices of buying and renting a home in a particular area. Also think about the type of property you require, the amount of space needed and your finances.

• Knowing the returns on your investment can help you while purchasing a residence. You can do this through the price-to-rent ratio tool, that's commonly used to calculate by dividing the annual lease and the worth of the house.

• Do a risk analysis as increased property costs tend to remain the same much longer whereas the leasing price might fluctuate as per the requirement. In fact real estate prices increase every five years in Tier I, II and III cities.

• Do a price benefit analysis using online calculators that may also include various tax advantages and investment approaches.

• This plays an important role in your property investment as the more you earn the more amount of home loan can you avail for a longer period. Also your month-to-month expenses should be less excluding your month to month home loan EMIs. Other aspects like upfront house costs and extra surplus amount also needs to be looked in to.

• Since you'll pay the home loan EMIs for an extended tenure, it's also sensible to have a stable job which the bank will take into account significant while granting a loan. Think about your job stability and salary hike before buying a property.

• Buy a house in an area with essential facilities and facilities as it will in future help you sell away your home easily. Ultimately your residence needs to be easily disposable.

Nevertheless, whether you want to buy a home or rent one, you should do meticulous planning and thinking.

To understand more about these Andrews Air Force Base Housing, visit These DC Rental Apartments are reasonably priced residences for all homeowners.

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