Buying your first house!
Friday, October 20th, 2006
As we saw yesterday, if you’re renting, you’re paying the mortgage and bills anyway. Unless you’ve taken this short-term and expect to move out of town pretty soon, it makes more sense for you to own the house, too.
It’s a big decision; the amounts are scary, in comparison with what you make each month, you’re committing yourself for a long time, and what if something changes in between?
Look at it this way instead.
* Housing is a basic need - so housing always has value.
* Even if you aren’t needing this house at a later date, you could always rent it out or sell it, recovering what you’ve paid or more.
* In general, the longer the period you’ve owned the house, the higher your return - there are some people expert enough to buy and sell within a short time and still make a profit, but the longer the period, the less the risk of loss.
Plenty of things to think about before you buy; but first, the down payment. Typically, mortgage loans cover 80% of the value - so where do you get the 20% from?
If you have the money, you can skip this. But if you don’t, check out 7 creative ways to buy your first house for some ideas.
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