Mississauga, Ontario (PRWEB) December 16, 2013
More and more people have now learned the benefits of buying over renting. Understanding the costs involved in buying and owning a home is important however, especially for home buyers who are trying to determine if buying a home is an affordable option.
The problem with certain potential home buyers is that they see a listing price and assume that that is all that will be required to be paid. However, they forget to factor in such things as the down payment, insurance, as well as the move to the new home itself, and the purchasing of major appliances, furnishings and design accessories. Another thing that home buyers need to be aware of is that they are responsible for the upkeep of the home. When something needs to be fixed, the home owner will either need to fix it, or dish out cash to a professional, thus increasing expenses related to home ownership.
Search Realty recommends that any potential home buyer take a good look at not just the home, but the costs that will inevitably follow.
Some major decisions need to be made before even thinking about purchasing a home.
The first thing that a potential home buyer should determine is the home value of homes that have peaked their interest. Using that data, the potential home buyer should then compare to the prices of homes recently sold of similar size within the same neighborhood. That way, the potential home buyer can quickly realize if the price is too high, or possibly a steal. Search Realty is readily available to provide this information to any potential home buyer as they progress in their search for a home.
The next thing for the potential home buyer to do is to compare various mortgage loan types and review the required down payment amounts to the money they have available. Down payments are based on a percentage of the value of the property and also by the type of mortgage selected. They typically range from three to twenty percent of the property value.
The last thing the potential home buyer must be aware of are additional costs, such as property taxes, moving and maintenance.
Property taxes are usually deducted through an impound account, and most of the time, paid with the monthly mortgage payment. A rough estimate for property tax is 1.5 percent of the purchase price of the home. Costs with moving are related to either the hiring of a moving company or even simply renting a truck. Finally, a budget for maintenance and repairs must be determined, and can be minimized if the potential home buyer uses the proper home inspection company to ensure they are getting a home that is in tact, and not falling apart from within. The home inspection company can sometimes also help to estimate typical costs for major and minor repairs.
The final thing for the potential home buyer to do is to weigh the costs with the benefits. The potential home buyer should always remember that there are substantial financial benefits that come with purchasing a home. The rate of increase in a home’s value and tax benefits are two of the more important benefits. In the end, the biggest benefit comes from the potential home buyer and his/her family having a home to grow and create memories in.
About Search Realty
Search Realty Corp.,Brokerage is a real estate company utilizing the best tools and technology to serve the needs of today’s Home Buyers, Sellers and REALTORS®. Search Realty Corp. has quickly grown to 100+ websites, over 15,000 Unique Visitors per month and 135,000 Page Views per month.