There are plenty of reasons to convince yourself to buy a house for sale in Abbotsford. The deals isn’t just financial but holds an emotional value to it as well. With an own house comes own responsibilities- (no pun intended). But, before you go out on a house hunting project it is best to ask yourself the following questions.Here a few questions that you need to ask yourself before you go out looking for a house.
Am I in the position to handle the finances involved in buying a house?
Take a good look at your financial condition at present and evaluate if you’d be able to afford a house at this point of time. Needless to say that if you’re struggling to make your ends meet and having a tough time paying your everyday bills, then it is better to wait till the situation stabilizes.
- In an ideal scenario you should have at least 20% of the price in your savings to make a down payment. Along with the 20% and mortgage insurance amount, you should also have contingency money for emergencies and added expenses after the house is purchased.
- WIthout the right amount of savings, your purchase is likely to fail and probably you won’t be able to get a mortgage from a lending institution.
For how long am I going to stay in that place?
It makes sense to buy a house in a particular place if you’re planning to stay there for minimum of five years. However, considering the present day scenario it is recommended to take even a larger window into consideration. Say- seven to eight years. This is due to aggravating transaction costs in real estate.
- Apart from the cost of home itself, there are additional costs involved such as- costs involved in selling, loan fees, moving cost. Also, you will have to pay for renovation costs with fresh paint, home decor, curtains and more.
- All these and more add thousands of dollars in costs. At the time of selling you can also lose the value of these additions as a part of commissions involved in real estate deals. In a typical scenario, it takes around five years to breakeven.
What is the final cost of owning going to be after the taxation?
With a solid financial ground and ability to get into long term commitment you should now get to know about the spending and its transition into monthly payments. Using one of the mortgage calculators can solve this challenge for you.
- While most calculators are implemented to evaluate property taxes and insurance you can get ones related to your own needs. This helps you get a realistic idea about your market.
- Be clear about the amount of mortgage that goes towards principal and the other towards interest. Consult an expert to know about tax benefits that you can secure in various deals.
Are there any hidden or added expenses in the deal?
Unexperienced home owners often tend to ignore the additional costs involved in the deal. Most common examples are failure to include monthly charges/ association fees in the condo accommodations.
- Costs for shared infrastructure which are never included in the initial budget.As owners you must always be clear and prepared for additional expenses, whether its fees or tasks like paint jobs etc.
- All these expenses should be embraced without complaining, there is no other way around it.
Apart from the aforementioned questions, you can always search locally depending upon the area where you wish to purchase a home. For example you can filter your search to Abbotsford and find the best options at http://abbotsfordhomeforsale.ca/ today.