From the start of the human race, man is struggling for a safe shelter, which he can call a home. If you are intending on buying a house, then let me guess that your friends and family have already encouraged you to buy it as soon as possible. It is because many people still think that investing in a home is a good investment that pays you off in the future.
However, here are some of the points you have to keep in mind before reaching any decision. I want you to pay considerable attention to these points and then come up with a wise decision.
Have you considered inflation?
I admit that one of the most cogent argument that everyone will give you is that the prices of the homes increase with the time and you will get the profit from selling it after a few years. However, here the twist is, have you ever thought about the inflation? The value of money that is going to decrease with the time, and it is going to offset your profit. Don’t you? Then think about it now.
Your home needs constant maintenance: it means extra cost
If you purchase a house through a mortgage, then you will be nominated for certain tax deduction due to the interest you paid on the mortgage. However, that is not the whole point to be happy about. Do you estimate the costs that you have to pay along with the mortgage installments? Well, if not, then it’s time to think about the maintenance costs, repairs, and insurance expenses.
Beware of the market crashes:
Do you remember the market crash of 2008? The greatest real estate bubble and how it got butts and a large number of people lose not only their money but also their jobs as well. The real estate market like any other market in the world is not entirely predictable, and you have to be prepared for a worst-case scenario. If during any such situation you make your ride out, then it is wonderful, but if during such market crash, you got bound to sell your home, then you are not only going to lose the money on your home but also the costs you pay for that.
Renting is the option but wait…
Of course, I admit that sometimes renting a house is a good option but not always. Understand it this way, when you pay the mortgage and other costs of the house you are building equity indirectly in your home. However, when you go to the rental option, you support the landlord to develop his stake. However, there are some excellent points associated with the renting, for example during any market crash or downturn you will not have to lose any money you paid for the installments and costs. However, a house of your own may give you the facility to spend your retirement years without thinking about the rentals.
Buying a house could prove an investment or a money drainage, but it all depends on the area and the market situation. Make your calculated decision by keeping in mind all the points mentioned above.