Owning a home is a dream of many families and it is a decision that is one of the biggest you will ever make. There are a few things you should be able to answer before making a decision as well as what you need to know about the real costs of homeownership. Here are some crucial factors to consider before you make a solid decision.
What You Should Ask Yourself
There are three major questions that you should be able to answer before you take the next step into buying a home and they include:
- What are you looking for in a new home?
- What will your finances support when purchasing a home or more aptly put, what can you afford?
- Pull that all together and the final question is to ask yourself what your lifestyle needs are and and how do they relate to your financial situation?
What Homeownership Really Costs
As a new home buyer, you are probably familiar with a few of the financial needs when buying a new home but do you really know what is involved with the true cost of owning a home? Here are three of the most important things to take think about when looking to buy a home:
- Costs Due Upfront. These are costs that you will have to come up with before you even move in. This includes the down payment, any taxes that are due, and closing costs. When you add all of these costs up, it can be a number that you were not expecting.
- Continued Costs. Ongoing and continued costs are simply a part of owning a home. For instance, property taxes, mortgage payments, utility bills, insurance, routing repairs, and general maintenance. And if you live in a condominium, you have to take into consideration homeowner’s association fees.
- Major Repairs. Something to take into consideration is the major repairs that can and often do pop up when owning a home. Whether it is the cost of a new roof or a faulty HVAC unit, these are typically expensive repairs that eat into your savings and can be devastating if you are not prepared.
There are obvious reasons why owning a home is better than renting but as with any major life-changing decision, there are pros and cons. For instance, buying a home allows you these benefits:
- Stability and the knowledge that you are putting your money towards owning something instead of renting where you will never own the property.
- The ability to renovate, decorate, and modify your home to your own liking.
- An investment that builds equity and can become an opportunity for income if you decide to rent out your home.
It is important to look at the pros and cons of owning a home and now that you have seen some of the benefits, here are a few things to keep in mind that aren’t as positive.
- You are responsible for any repairs, upgrades, or renovations.
- Major repairs can come up and you are the one who has to pay the bills.
- Your home may lose value over time and if you sell, you may lose money.
- Your monthly mortgage payment may go up if the interest rates have increases.
Owning a home is one of the things that is a dream for many and it makes an excellent investment as well as providing your own sanctuary and the sanctuary of your family.
Oakville Real Estate Law is one of the top firms in Canada for real estate transactions. The firm’s team led by Robert Rose has worked on thousands of transactions the years and have the knowledge and experience you need. For more information, please contact us and we will be glad to help.