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When should I buy? Five factors to consider |
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By Shelia Amizzadi, Realtor |
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| Buying property is generally a smart investment decision. However, there are a lot of factors to consider. If you stretch
yourself too thin, or lock yourself into something long-term before you're ready, it can be tough and stressful. So to
help you make your decision on whether to buy or not, here 5 considerations you need to make first! |
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Big Investment Upfront |
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| You have cough up lot of money to purchase a home,
from the closing costs to the down payment itself.
Not everyone has that kind of cash to spare. |
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Involves Debt Management |
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| Lenders often look at your debt-to-income ratio: how
your mortgage payments and other debts would stack
up against your pay. Conventional lenders often use
the so-called 28/36 rule when determining whether
to offer you a loan. Your house-related payments
shouldn't exceed 28% of your pretax income, while
other combined debts shouldn't exceed it by 36%. |
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More Expensive Than You Think |
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| Don't compare your monthly mortgage payment to
your monthly rent - apples and oranges! Though you
can deduct some of your homeownership expenses,
you'll have to pay property taxes, homeowner's
insurance, HOA fees and probably mortgage insurance,
plus renovations, maintenance, utilities, and other fees
typically covered by a landlord. |
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Decrease Mobility |
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| In today's ever-changing job market, very few people
can say with certainty that they'll have the same
employer in five years. It's much easier, and less
expensive, to leave a yearlong lease than to sell a home. |
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Is Your Market Hot? |
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| Don't compare your monthly mortgage payment to your monthly rent- apples and oranges! Though you can deduct
some of your homeownership expenses, you'll have to pay property taxes, homeowner's insurance, HOA fees and
probably mortgage insurance, plus renovations, maintenance, utilities, and other fees typically covered by a landlord. |
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