Making a Smooth Transition from Renting to Owning
When you’ve been renting homes all your life, you may not really know where to start when it comes to finally buying a home.
- Should you get pre-approved for a mortgage or find a home first?
- Should you go with a starter home or treat yourself to luxury homes for sale?
- Do you need to save up the down payment before you do anything else?
- What about hiring a luxury realtor to help you find the home of your dreams?
Here we’re going to go over some things that you will need to know to get the home that’s right for you, so let’s get started!
Itemizing Your Costs
When you own your home you’re going to be able to itemize costs of your luxury home like:
Mortgage Interest ? Whatever money you pay towards interest will be tax deductible, so you’ll want to keep on top of it throughout the year. Keep your mortgage statements every month so you know how much you’ve paid and how much you’re still paying.
Property Taxes?Property taxes on your real estate are for the most part tax deductible. You’ll want to talk to your financial advisor to see if you can do this for your case, but it never hurts to ask. If not you can always deduct gifts to charity, private medical expenses and even stuff like home improvements.
The Benefits of Equity
If you own your own home, you won’t have to worry about rent ? and with equity you’re saving up money for a rainy day. You’ll be able to put that money away for when you need it! If you pay off your home in full you’ll be able to borrow against up to 80% of your home’s value, but most people never need that much. You’ll want to be careful about what lenders you work with for that though, because you can easily get trapped in a situation where you lose your home.
Paying for Everything
A Downside of owning your own home means that you’re going to have to pay for everything. You’re going to have to make sure that you keep up on maintenance, you’ll have to make decisions and if you don’t take care of it no one else will. That means you’re going to have to keep on top of it, and that can be a lot of responsibility for one person, especially when you’re not used to that.
Mobility is Limited
Mobility is limited when you own real estate, but that can be remedied when you have a portable mortgage. You don’t have to be trapped, but you do have to be willing to stay in the same place for a little while. That’s just the trade off when you own your own home; you’ll want to consider this before you buy any kind of homes for sale or real estate. It’ll tie you to a certain area until you can sell it again, and no one knows when that might be.
This guest blog was submitted by The Goodale Miller Team. ?The #1 team in Canada for Century 21 for 8 years running.? Specializing in Oakville luxury real estate, including Oakville Lakefront luxury homes, infill building lots, condominiums and more. If you would like to submit a guest blog, please visit our website atwww.homemd.com?
For more helpful information and resources or to schedule a home inspection in the Louisville and surrounding areas, call us directly at
502-290-3935 or schedule online at www.homemd.com.
