Should You Buy A Home?

Here’s another post taken from my ‘News You Can Use’ Preferred Client publication. ____________________________________________________________________________________

How do you know if you’re ready to buy a home? Start by doing your research. From there, make a plan and prepare a budget. Here are some questions to consider in making your decision.

“You” Considerations How long do you plan to live in your next home? Does your job or lifestyle require frequent moves? What are your reasons for buying? Do you wish to be a homeowner or are you thinking of ‘trying it out’ as an investment? Remember that home values increase more over the long term so if you’re moving more often than every few years, you may not see significant gains when you sell your home. You will however gain equity in your home as you pay down your mortgage – rent money is gone for good.

Financial Considerations How healthy are your finances? Do you have money for your down payment, closing costs, insurance, property taxes, and a buffer for unexpected expenses that can occur when you own a home? If not, speak with a mortgage broker and/ or your financial advisor to determine the steps you should take to put yourself in the best situation to purchase a home.

Real Estate Market Considerations What is the real estate market doing in the area? What are the current mortgage rates? What kinds of homes are available in your price range? Are they located in neighbourhoods that suit your lifestyle? If you are not able to buy a home as desirable to you as the ones you could rent then consider your willingness to live in a ‘not-quite-my-dream-home’ for a time. The equity you’ll gain can help you upgrade sooner than you could if you continued renting and tried to save the additional money. A licensed REALTOR® can provide you with valuable market information and help you evaluate your options.

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