When it comes to buying a home, there are so many emotions and dreams wrapped around this purchase that it can become difficult to make a level headed decision. Many people have their dream home already in their minds, and it can be frustrating to realize that you may not be able to afford every feature that you want right away. You may be tempted to go over your original budget, but be careful because you do not want to end up house poor.
Being house poor means that you are putting too much of your income into your house, and then you do not have enough money to cover your other expenses. When you think of the money that you are paying for your house, you should consider homeowner’s association fees, insurance on your home, taxes and possible repairs that you may need to make. Excluding your possible repairs your cost for your home should be between twenty-five and thirty percent of your income.
Before you purchase a home you should ask yourself how much space you really need. When you purchase a larger home, your utility bills will go up. It can also be difficult to keep up with everything in the house. You may also consider purchasing an older home to save money, but you must take into account any repairs that may need to be completed. You may opt for a newer smaller home to save money on repairs or if space is your biggest concern, you may decide to purchase a bigger older home.
It is also important to consider what lifestyle changes you may have to do in order to afford your home. You may need to cut back on luxury items so that you can truly afford the home. If you do this, you may begin to feel resentful because of the purchase that you made. Be careful to make sure that you find a place that you will be happy in over the next few years. You can learn more about purchasing a home in the Real Estate Blog.
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