Home Purchase.

Every one has a dream of purchasing a home at some point in their lives.

Things to consider when buying a home:

Pros:
1. If renting one can select the length of the lease or go month to month.
2. One can move closer to the place of work.
3. One can move to a different school district if one desires.
4. Rents vary depending on location and kind of apartment, one can select between any of these.
5. There is no long term commitment, so if job location changes, can move out at a very short notice.
6. If any appliance / electrical / air conditioning / plumbing breaks, a call to the leasing office will get this fixed the same day or in a few days without any extra expenditure.
7. Out of pocket expense on the rent is lower.
8. Interest money paid towards mortgage is tax deductible.
9. Property tax is tax deductible.

Cons:
1. Money paid towards rent does not build equity.
2. Cannot play music loudly or have a nice subwoofer on loud when watching a movie.
3. Have to deal with neighbors walking loudly on the floor above you.
4. Do not get a large area for the amount of money paid as rent.
5. Cannot paint walls in color desired.
6. Cannot make structural changes or other changes as one desires.
7. Keeping pets costs extra.
8. Insulation is poorer, so utility bills are higher.
9. Heating in apartment is done using hot water and is of poorer quality than one heated by gas heaters. Due to this it takes a long time to heat up the apartment using up more electricity and gas.
10. One needs to stay at least for 7 to 8 years to come ahead and make money when selling home.
11. Home prices do not go up all the time, they can fall rapidly based on economy and one may loose money if purchasing the home at a wrong time and selling at a wrong time.

Now that we have got the pros and cons worked out and you are still ready to buy a house, these are things to consider buying a house.

Location
This is very important. The location of the home is the first thing to be taken into account.
- Consider the school district (if one has kids).
- Consider the proximity of major shopping complexes or place of work next. Time spent in commute takes away a lot of time from your life.
- Look at the neighborhood to see how the houses around are maintained.
- See the rental history of homes in the neighborhood.
- Decide whether one wants to live in a neighborhood where there is a home owners association.


Direction of home
Decide on whether one wants a home facing a certain direction. Some people prefer homes facing the north.


Trees
See whether the home is surrounded by trees. This helps in reducing the cooling costs. But if the trees are dense then the electricity bill goes up, due to keeping on lights in the home.

Pool
This is expensive to maintain. If one is not interested in a pool in the home, avoid homes with pool.

Land
If one is interested in gardening, ensure that the house has land with open space without any tress and direct sunlight to grow plants. Advantages is that one gets fresh vegetables with minimum effort. Reduces grocery expense.


Utility Bills
Check with the owner the past utility bills (Consider summer and winter bills). This needs to be factored in when buying a home. Apartment utility bills are very low compared to home utility bills.

Equipment Maintenance:
Air conditioning/ heating equipment need to be maintained regularly. Consider these expenses. Save money upfront for these expenses.