Moving into a New House after the Wedding – Buying vs. Renting

Moving into a new house after the Wedding would be exciting but there are few points to consider. Whether you want to buy or rent the house. Here are a few points which might help you decide. Consider all the advantages and disadvantages before making a decision.

1. The most important thing while planning a budget is money spent on the house. If you have enough money to purchase a house then go for it or large family. If it’s only you and your husband consider renting an apartment. Make a decision according to your needs.

2. Rent and mortgages are closer in monthly payments thank you think. Average three bedroom rent in metro is expensive. That’s for a rented place not a house. Instead take a loan to buy a house which you can call it yours.

3. The value of your home comes not from paying it off, but from appreciation. Taking finance for 30 years is more beneficial than renting a home. For example: If you take $215,000 financed for 30 years at 6% and 6% average appreciation (a historically reasonable number). Over the course of the 30 years, you will make payments totaling $464,054. At the end of those 30 years, your home and the land it sits on will be worth $1,234,850. Of that value, only about a third is what you actually paid in mortgage payments. The rest ($770,796) came from the appreciation.

The tax paid for the amount is tax deductible. At the end you will have your own home. As the amount which you pay for rent you can pay as installments for the finance taken by you.

4. Renting a home will cost more as over the years, the rent you pay will increase but the installments that you pay for the loan taken will remain fixed.

5. Paying for a place are like paying someone’s mortgage. The landlord does not own the place. So when you pay the rent to the landlord he in turn pays that amount for mortgage. As the years pass buy the rent will increase but the amount of mortgage will not increase.

6. Home prices increase every year in urban city. The prices of land are cheap outside the cities. So the longer you wait to buy a house the more gap will be their. As the land prices are increases and the salary are the same or increase on a minimal pace.

7. Make sure to calculate because you will see the difference in three years of renting a house. The amount is huge. So in the long term the extra money could be used for your retirement.

So buying a house or renting it will make a lot of difference. So before making any decision considers all the positive and negative sides. Research properly because it’s a big decision to make.