Houses In USA
A house is probably the largest purchase you'll make in your lifetime, so
it's important to do it right. The purpose of this section is to walk you through the steps so you can be confident that you made the right decisions. By following the steps outlined below, you'll be on your way to making a sound financial decision.
There are a few quick rules of thumb to consider before purchasing a house. The first is that if paying rent saves at least 35% over the costs of owning (mortgage, taxes, repairs, insurance, etc.), renting is usually the better option. The second is that it is usually not a good idea to buy a house that will be owned for less than about four years because the transaction costs of buying and selling are high. If the value of the house does not appreciate sufficiently between the purchase and the sale, the result will usually be a net loss (note that houses in communities with good school systems tend to appreciate in value more reliably than houses in less desirable school districts). When calculating the costs of owning, you should also take note that the interest paid on a mortgage is tax-deductible; so be sure to calculate the after-tax costs of buying a home versus the after-tax costs of renting a home. If you have had credit problems in the past, it may be advisable to rent until your record is cleaned up before seeking a mortgage in order to keep rates down and increase the amount you can borrow.
There are also options for owning property other than buying a house. Purchasing a condominium gives the buyer ownership of a living space and the right to use common areas associated with the complex. Monthly fees are paid to the organization cover upkeep and improvements. Taxes, mortgages and utilities are also the responsibility of the individual buyers. Co-ops
are similar to condos except that the buyer does not assume possession of the physical living space. Instead, he receives a share of the whole complex. Taxes, mortgages and utilities are paid collectively by everyone in the association.