Home buying can be exciting, but we all know the stress that comes alongside this kind of venture. Aside from the massive decisions involved, it also has major financial implications.
When you’re buying a home, you’re looking at way more money than just the price tag you saw on the real estate website. It’s tough to budget when you don’t know exactly what you’ll be paying for, so here’s a roundup of a few of the expenses you’ll need to take into consideration before you buy.
Of course, the biggest and most important expense is the home loan itself. The way you handle this will all depend on your existing finances, how much you can afford to pay off monthly, and various other factors.
The larger your down payment, the less your monthly repayments will be on your mortgage. Only once you know what you can afford, start looking for homes for sale in Toronto or whichever area you prefer, that fit your budget – but be sure to factor in these next expenses too.
Depending on where you live, the legal processes involved in home buying can differ. However, one thing you can depend on is that it’s going to cost you some money.
From transfer fees to legal documents and paying attorneys, there are plenty of law-related costs that you’ll run into on your home-buying journey. Be sure to talk to a financial advisor (or at least someone experienced whom you trust) to talk you through the various legal fees you’ll incur during this process. Make sure to factor this into your budget for the upfront fees.
Renovations & Repairs
If you were renting previously, this can be a major financial transition to deal with. When you own a home, you are entirely responsible for any repairs that need to be done, and these can really add up. If the home needs work when you first purchase it, be sure to get quotes and factor these amounts into your budget.
If you wish to do any renovating at any point, you’ll need to consider these costs too. A good tip would be to only focus on renovations that are crucial for your comfort/lifestyle in the beginning – this could be something like adding in storage space you really need.
It’s important that you create a home maintenance plan and checklist and stick to it. Failing to keep your home well-maintained will only be detrimental to you in the long run and you’ll want to make sure you’re taking care of this new asset.
Create a monthly savings account where you contribute to your maintenance fund so that these tasks aren’t such a financial blow when they come up.
Decorating & Décor
Finally, when it comes to home decorating, knowing where to spend and where to save is an important lesson to learn.
In some areas, investing in quality materials, furniture and décor are worth your hard-earned cash. However, these are small details where you can opt for the budget option and nobody will be able to tell the difference.