Auston Woods Apartment Homes Blog

Have you ever heard the expression “People hear what they want to hear?” For some reason, most people seem to immediately believe their friends and family when they are told that they should “stop throwing their money away on rent and buy a home.”

• First of all, the majority of money that you pay towards a mortgage is mortgage interest (especially in the first few years of a mortgage) and all of this money goes directly to the bank (not to the principal). On most 30 year mortgage loans, it is not until year 19 or 20 that you are paying more towards the principal than to mortgage interest. I am a home owner and have yet to hear anyone tell me that I “should stop throwing all of my money away to the bank.”
• Secondly, there is a lot more money “thrown away” on closing costs, maintenance costs, insurance, property taxes, landscaping, and decorating. For those that are continuing to choose to rent an apartment home at Auston Woods Apartments don’t be so quick to believe those well-meaning friends who tell you to stop throwing your money away. Most of you are throwing away much less money than those home owners and have a maintenance-free life!

Well, ultimately you have to make your own decision, so do your research . Check out our Facebook page and stay connected with us.

The tax credit that is being offered in 2010 is a great incentive for those who are READY to buy a home. Being ready involves many things, some of which people do not consider before taking on the responsibility of home ownership. It is really important that you are both
financially and emotionally ready and some people (including myself) can get easily excited about the prospect of buying a new (or existing) home.

Two of the things that I have learned from home ownership is that it is a place to live, not an investment AND if you need to sell in a
down market, be prepared to wait until the market turns around! If you need more space, crave yard work, or just want to be able to tell others that you live in a home AND you can afford the additional expenses associated with home ownership (down payment, closing costs, taxes, insurance, mortgage interest, repairs, redecorating), etc. then it’s probably a good idea for you.

The tax incentive you may receive will (in most cases) not offset the additional costs. It will also not give you free time on the weekends and the ability to move whenever you want.

Selling a home takes patience and money, not to mention that you may have to sell in a down market and pay money out of pocket to sell!
There are so many things to consider . . . .

By Jennifer Moran