Are you ready to become a homeowner?
Congratulations! You’ve decided to buy a house. Owning a home is something to be proud of, but be careful. Are you really ready to be a homeowner? There’s a huge difference between the dream and reality.
To become a homeowner, you’ll have to make a down payment of between five and 20 per cent of the property’s price. And that’s not all; you also need to estimate any additional costs associated with the purchase, such as a home inspection, notary or lawyer fees and legal expenses for the transfer of ownership. Generally, you should expect to pay about three per cent of the purchase price for these additional expenses. Don’t forget to add in the property taxes and home insurance as well.
You’ll also have to take into account the costs of moving, renovations, utility connections (electricity, cable, Internet, etc.) and any maintenance. In other words, it’s important to evaluate your ability to pay before buying. Your current debt load will be a determining factor, so do your calculations carefully. Tip: before you start looking for your dream home, make an appointment with your financial institution to find out what level of mortgage loan they would give you. Of course, you don’t have to do this, but it can help you target properties in the price range you can afford.
Lastly, don’t forget that even though home ownership is a great way to build capital, you’ll have to find the time, energy and money to take care of your home’s maintenance and repair work. If you’d prefer to use your savings and free time to see the world, you’d better think twice before signing.