Checking new listings for townhouses on a daily basis can simplify the process of finding your ideal home. You will become acquainted with the property prices in different areas, and you will recognize a good deal on an affordable townhome when you see it!
Do you find yourself passing up homes, one after the other, because you’re unable to make an offer? If so, you’re probably feeling pretty financially overwhelmed. Buying real estate provides you with many benefits, such as rising values and a stable home environment. However, there are risks you should consider as well. What if:
- you lose your job and can’t meet your mortgage payments?
- the market slows and your property declines in value?
- both happen – you can’t pay your mortgage and you can’t sell?
Listen to your gut. Stretching to buy the most home you can afford might be a good strategy for people who are confident in their employment, know that their salary will go up over time and have adequate cash in the bank to handle unexpected expenses. For the rest of us, being prudent is the key! You should not be spending more than 1/3 of your gross income on housing costs; if you are, consider looking at homes costing less.
You should also consider the worst case scenario. What if interest rates rise sharply? What about government actions, such as limiting foreign buyers, which upset the real estate market?
Buy your home with the intention of living there for some years to come. There are a number of expenses when buying a home: property transfer taxes, legal fees, appraisals, lender fees, etc., and you probably won’t recoup these expenditures if you sell very soon after you buy.
And remember: you do NOT want to wind up in Foreclosure! Don’t hesitate to give us a call if you’d like to discuss what kind of home you can comfortably afford.
