4 Things that change when you make the move from renting to homeownership
The benefits and responsibilities
We've all been raised to think that life happens in a certain order. First, we complete our education, then we find a great job, we get married, and we buy a home to raise our family in. What we are not taught are all the responsibilities and benefits that come along with homeownership. While a few of them may not seem like a benefit at the time, in the long run, homeownership is definitely the best investment for your money.
As a homeowner, you don't have the ease of calling your landlord to tell him that your fridge has broken or you need a new stove, these costs fall on you and you'll need to save for them. With any home, there is constant wear and tear, things that will break down, or require repairs, and as a homeowner these are your responsibility. Always try to have a backup plan for these repairs if and when they are needed.
2. Separate bills
As a renter, you may have had the benefit of paying just one bill to your landlord and having all your utilities included. However, as a homeowner, this is no more. Along with the pride of owning your own home, you also have the responsibility of paying all the associated bills. you will receive separate bills for everything, including internet, cable, phone, electric, and don't forget there will be a few that are likely new to you such as garbage collection and water bills.
3. Property taxes
Property taxes are another bill that you will be responsible for. While many banks will include the taxes in your monthly payments, some may not and you will be responsible to come up with this amount each year. Also, be aware that if you choose to build an addition onto your home, you may be charged a higher amount for that extra space.
4. Build equity
As a renter, you are paying into something that is not gaining you any future value. Whereas a homeowner is building equity in their home that can be used for future home purchases, loans, and of course, a greater profit when selling the home. Making your mortgage and utility payments on time each month will also help to build your credit, which is extremely beneficial for future purchases and loans.