FINANCIAL
NEEDS
Buying
a house is an investment and for some people it is the write
one. But is it the write one for you?
You
Should Consider Three Factors:
- Time
in Home
You probably will not recoup the high costs of buying and
selling a home if you only intend to stay in the property
for a short period of time.
- Effect
on Your Cash Flow
You will need to have enough cash flow for both a down payment
and your monthly housing expenses.
- Down
Payment
Most people do not have enough money saved to put down
20% which most lenders ideally want. But there are other
possibilities like only 5% or 10%. Even 5% of A $200,000
house is $10,000, could this be something you can afford?
- Your
Monthly Cash Flow
You can expect that your initial mortgage payments will
be higher than your current rental costs. There are
other reasons that buying a home can save money. You
usually will have tax savings, and other factors, which
make it cheaper each month to buy than rent.
- The
Investment Opportunity
How does investing in a house compare to other investment
opportunities?
- Your
New Home as an Investment
When buying a home it is relatively stable and a long-term
investment. It also has the benefits of being able to
do what you want with your property.
- The
Opportunity Cost
Investing in property can tie up a lot of your capital
in one place. This money could also be spent on other
and potentially better investments. Pre-qualification
Fill
out our quick pre-qualification
and find out where you stand.
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