Lots of us have had to make a big decision in our lives. Many of us have had to make this decision a few times. Should we rent or buy a home? It may seem like the answer should be obvous, but it really is not. If you are thinking about your options, consider some of the real costs of home ownership.

You will probably need a large down payment. Most of those 0 money down schemes are gone. These days, a twenty percent down payment is back in fashion. Do you have this money? And after you put down this large amount, will you have any savings left? I think we have all learned that it does not do to be house poor in this day and age.

Think about the length of time you plan to live in the house you want to buy. Home owners, who stay put for years and decades, tend to be more satisfied with their purchases. If there is some chance you will have a job change or transfer in the next few years, you should weight that in your decision. It is so much easier to get out of a lease than a home purchase! It should be obvoius that you will not be able to get any guarantees that your home will sell for a good price when you need it to.

When you consider buying a home do you only compare rent payments to mortgage payments? There are many other costs associated with owning a home than with renting. Most renters pay rent. They may also pay renters insurance which usually does not cost very much. But home owners must pay home owners insurance premiums, property taxes, home repair bills, and also pay for upkeep. Do you have the money to cover all of these costs?

How many times have you called the rental office when your dishwasher did not work or the heat would not come on? They call a repair man for you. Now it will be your duty to get things fixed. It will also be your duty to pay the bills. Another budget item will be setting aside some cash for emergency repairs.

Also consider homeowners association fees. In some neighborhoods, these are moderate, but in some neighborhoods they can cost hundreds or thousands of dollars every year. And things can get reallly ugly when these are not paid.

Almost all homeowners must also carry homeowners insurance policies. The cost depends upon many factors, but it is usually a few thousand dollars a year. Renters buy renters insurance, but that is usually very cheap since it only covers contents.

Now many realtors will cite the tax benefits of property taxes and mortgage interest. But you can only take advantage of this if yours are higher than the standard deduction that everybody gets to take.

I understand the advantages of home ownership. But I also understand that the decision to buy your own house should not be made lightly. Make sure you really figure out how much it will cost you to own before you buy.

Should you own or rent homes?