Before thinking about buying a property, it is essential to budget to make sure it does not become not a prison, but a place where life will be good.
It is not you do not have to do a total overhaul of your income and your expenses.
However, the purchase of a house will result in a increased spending, hence the need to have planned the shot.
Thus, your mortgage payment including taxes Municipal and school should logically be higher than your current rent payment. Other expenses, including maintenance,
are also to be considered. Usual expenses, such as groceries, insurance,
credit cards, auto loan, internet, phone and others should remain the same.
What to expect?
The calculation is simple: if your rent is currently costing you $ 700 / month and the future mortgage (including taxes municipal and school fees) will be $ 1,300, you must be able
to demonstrate a savings of $ 600 / month for several months,
otherwise you may encounter a payment problem.
In addition, a house also requires maintenance expenses (about $ 300 / month). So you have to get into the habit to save about $ 900 a month, while you are a tenant,
to make sure you are able to meet the expenses incurred when you own. Logic is enough
clear. If you only have $ 5,000 in savings during the last year for the down payment, you have a problem.
Indeed, it shows that you have set aside only about $ 400 / months while your
new payment requires a minimum
$ 600 / month. This is without counting the unforeseen and crenovations.
You will not be able to assume allthe inherent expenses that an owner has to face.
Building a good budget will allow you to ensure the success of
your investment. The purchase of a house is planned in advance
to avoid inconvenience.