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Should You Buy A Home Now?

By Marilyn Katz

Republish: EasyPublish™ Published: 02Aug2009 Word count: 527 Viewed: 274 time(s) Get Free Content For Your Site

Can you afford to buy a house now? Most of us dream of home ownership, especially after we have a family. In our mind, a home seems to bring more privacy, freedom, and pride than any rental place. But is buying a home always the right thing to do?

We certainly see lots of mortgages advertised, and it seems like the monthly payments might be as cheap as rent. But are the ads telling the whole story, or are they simply trying to hook you in before you learn everything you will need to pay.

First, you will probably need a down payment in order to get a mortgage these days. Down payments vary, but may range from 10 to 20 percent of the purchase price. If you cannot afford to put down several thousand dollars you need to consider how wise it is to buy a home in the first place. In addition, it is nice to move in with some equity in your home from day 1.

You should also consider property tax rates in the town you want to live in. Even if those rates are fairly low, they will still probably add up to a few thousand dollars a year. You may be able to pay the taxes out through the year in your mortgage payment, or you may need to come up with a lump sum every year. Either way, you must consider this extra money when you are deciding if you can afford to buy your own house.

Homeowners insurance also adds up. Even a modest home may cost a few thousand dollars a year to insure. If you carry a mortgage, your lender will probably require a home insurance policy. But even if you do not owe anything on your home, you probably need to protect your investment with proper coverage.

If you rent a home or apartment, you are probably not used to worrying about repairs or upkeep either. Are you ready to come up with the cash or credit to repair an air conditioner or home heating system, or even to pay the insurance deductible if your home has storm damage. You need to be financially responsible when you own your home so you can make timely repairs.

Upkeep costs money too even if you do not need to make any major repairs. The lawn will have to be mowed, rugs must be cleaned, and various small duties will need to be attended to. If you want to have a home you can be proud of, you will need to have the money and time to keep your home looking tidy and well kept.

I am not trying to discourage anybody from having their dream of a family home. I am trying to encourage people to take a hard look at the price tag of any home they may be considering.

In addition, instead of trying to figure out how much house a family can afford, maybe families should consider which is the least house they can live with. A smaller home as many advantages like lower energy bills, smaller rooms to keep up, and probably lower property taxes and insurance.

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