Have you been wondering if now is the time to buy? If so, the first factor to consider is whether or not you can actually afford to buy. Have a good understanding of where you stand financially right now.
That means finding out whether there's enough money for a down payment — a minimum of 5-10% of the home's purchase price. It's also important to look at what other debts you owe and how stable your employment is.
And the down payment is just one cost to consider. Potential home buyers should set aside another 1.5 – 3 % of the purchase price to take care of closing costs.
Once the papers have been signed and the property is yours, it's not just the mortgage payments that you have to worry about after that.
Can you afford property taxes, condo fees, heat, utilities and repairs?
When you own a home, you can't call the landlord. You're the landlord. You have to create a cushion in your monthly budget to provide for these additional costs.
Sometimes it does make sense to rent if you're moving around frequently for work or if the money simply isn't there.
Some renters have a different perspective and they have ditched home ownership in favor of renting — some for lifestyle reasons rather than financial.
Many don’t like to own because they don’t like to feel so disconnected from the cultural and social life in the city and the chores associated with keeping up a home.