Buying Your First Home

Buying your first home can be an overwhelming endeavor. Young, prospective homeowners must be informed about the advantages and disadvantages of making the change from renting to owning their property. This is a big step towards becoming a fully independent and rooted adult and should be considered carefully. Having lived in both rented and purchased houses, I can personally comment on the subject and hopefully provide valuable advice to young adults looking to make this change in their life.

First, let me start by saying that for some people, owning a home simply does not make sense financially and for their current goals. However, many will find that they are ready for something more permanent than their apartment, particularly new parents

As a renter, you are likely to experience increasing rent prices and may eventually be unable to afford living in your rental home. It should be noted, however, that homeowners have property taxes that renters do not have, but those are tax deductible. According to Zillow, there are significant savings from the tax benefits of owning a home that can often make owning equally or less costly than renting. On that note, according to a survey conducted by the Canadian mortgage insurer Genworth, homeowners are in significantly better financial situations because they exhibit more responsible money habits. On top of financial benefits, owning your home provides more stability than renting it. A study by the National Association of Realtors showed that homeowners move less and stay in their homes longer. Between 2010 and 2011, only about 5% of homeowners relocated, whereas about 26% of renters relocated, with many of them citing housing-related issues. Similarly, unless the bank forecloses on your home, it is yours until you decide otherwise. Renters do not have that security, with the possibility of eviction uprooting them and their family. Aside from financial and stability benefits, when you own your home you can do just about anything you