How Much You Should Spend on a Home – Seattle Search Homes – Real Estate Seattle – Seattle Homes – http://www.ThachRealEstateGroup.com

For most people, a house is the biggest purchase they will make in their lives, one they will pay off for years, even decades, to come. But spending too much on a house could leave you with little money for other goals in life, such as retirement, college funds and vacation.

Before beginning a house hunt, you must first decide whether renting or buying makes the most sense.

If you’re a renter, keep in mind that your rent will go up over time. Renters usually rent if they know or like the idea that they can move when and if they like. Also, renters usually do not have to pay for the maintenance, lawn care or home repairs. They also don’t have to put sweat equity into the rental.

If you buy, know that you’re committed to years of fixing anything that breaks in the house, manicuring the lawn, and paying for any major repairs. Renting makes sense if you plan to live somewhere for a relatively short period of time, as the costs associated with buying a home — such as escrow fees, taxes and closing costs — take some time to amortize. If you’re planning to remain in a place for a longer period of time, buying a house is usually the way to go (however, this equation changes with home values in your area, employment trends and several other factors). Even though the market may fluctuate, over a long stretch you’re likely to make money. And as the real estate market has shown us in 2007 and 2008, it can be a bumpy ride.