Buying: pros and cons

After years of living in a rented apartment or house, it is common for tenants to become a little frustrated. Plenty of renters are fed up with paying high rent, and building no equity. This is especially true when renters’ observe that their friends and family with mortgages have comparable monthly payments and something to show for it: ownership.

It is important to remember, though, that with ownership comes responsibility. Renters don’t have to worry about all those nagging maintenance problems that plague even the most well kept homes. Homeowners have to worry about these things; even worse, they have to pay for them.

If you decide that you are ready to assume that responsibility, there are a few other things you should consider before you turn in your lease for a mortgage.

Much like marriage, buying a home requires commitment. If your life circumstances are not conducive to making a commitment, then you should probably remain a renter for the time being.

So how do you know if you are ready to make that commitment? As long as you are reasonably certain that your job, finances, and other expenses will be stable for the foreseeable future, you should be in pretty good shape.

On the other hand, accountants who are thinking about becoming actors, people working for companies with precarious financial situations, and those interested in moving within five years or so should probably think twice before taking on debt that they might not be in a position to pay back.