Thursday, March 13, 2014
Buying a home is not an easy decision, particularly for first-time buyers. Buying a home is one of the first steps to financial stability, however, there may be some accompanying fears and misgivings that come with this commitment.
Expenses for repairs and maintenance
Making the move from renting a house to buying your own home involves several overhead expenses you don’t have to worry about as a renter. The repair and maintenance of your own home is your responsibility as the homeowner. You'll have to devote some time and money when these needs arise. These are expenses you can’t avoid as a homeowner.
However, there are some steps you can take before you buy a home. Opt for a brand new or recently renovated house to avoid having to conduct big renovation projects. If you have your heart set on a pre-owned home, have a thorough home inspection to assess the property condition before you commit to the purchase.
Exorbitant monthly dues
If you've bought a house in a condominium building or a gated community, there usually is a homeowners association (HOA) and coordinating monthly HOA dues. Monthly mortgage payments for the home are another financial burden you'll have to shoulder. These are inevitable responsibilities when you have to face.
It’s important to assess your financial situation well before you buy a property. Don’t buy a house you can’t afford. Consider the initial down payment and how much you'll need to dip into your savings, as well as the remaining balance to be paid in monthly installments. Assess whether you can comfortably pay for these monthly dues. Consider possible worst-case scenarios such as emergencies and job loss too. It’s also a good idea to set up a sizable emergency fund for these possibilities.