Military Housing Tips - Things to check before Purchasing a House off-base

While getting deployed to a particular military location, it becomes important to decide whether you'd like to buy a house or rent it. Though both the options have their share of advantages and disadvantages, it depends largely on your financial position, location of deployment and certain other preferences. Check out some interesting info below:

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Let us first have a look at some of the advantages and disadvantages of both Renting vs. Buying a home off-base.

Renting a home

Advantages:

1) A rent is generally comparatively lesser than the monthly mortgage amount for the similar house. 

2) You don't have to take responsibility for house repairs or maintenance. 

3) The initial deposit for renting a house is considerably lesser than the down payment needed to purchase the similar house. 

4) Adding a military clause in your lease agreement can allow you to break the contract in your terms in case of further deployment.

Disadvantages:

1) You don't get to earn profits from the house's sale. On contrary, your rent may get increased in case you get your contract renewed after some time. 

2) Rental options may be limited in your preferred location.

Buying a home:

Advantages:

1) You can earn profits from your house sale, if the price goes up after some time.

2) You can get tax deductions on mortgage interests and property tax.

3) Military families get Basic Allowance for Housing which is tax free.

Disadvantages:

1) You need to have enough cash for the down payment and closing price of the house.

2) You have to take the responsibility for the house repairs and maintenance.

In case you have a good credit history and you choose to purchase a house, your buying capability depends largely on your monthly income, insurance and taxes. Ideally your total mortgage amount should be less than 28% of your income (without taxes!) and your total debt amount (including your mortgage and others) should be less than 36% of your total income. Once you've discussed your options, contacted the bank, Mortgage Company and got your loan approved and sanctioned, the next step which requires a lot of work is finding the house that fits into your taste.

Location is the key factor when it comes to finding a house as the area of your preference should be safe, near to base and should have good quality schools and recreation centers near by. Though Internet can help you know more about the location, it is best to contact a real estate agent to show you the housing options.

Once you have found your perfect home, made the negotiations for the price and paid the initial deposit, ensure that the house is inspected by a qualified professional inspector to check for any deficiencies and repairs. You can then negotiate with the house owner depending on the repair work needed. You can either get it done by them or expect a refund in the house payment. Once all the details are done, your final sales agreement must include all the details like expected closing date, final price, repairs and list appliances and fixtures that come with the house (like windows, fans, tube lights etc.)