When the idea first pops into your head about investing in a new home, there is little else but the feeling of excitement and change taking over. Certainly at this stage the cost of the whole affair will not start to hit, not until at least a bit later on into the plans. There are so many things to take into consideration, especially if you have a family to think about, that once the excitement starts to fade, panic about money can start to settle in.
Go with what you can afford
If you will be forking out more for your mortgage than you can realistically afford each month, it’s time to think about putting down a bigger deposit or scrapping the idea altogether. You don’t want to compromise on your quality of living, more importantly not when you have a family whose lives this could also impact on. You may have found your ideal home, but if you can’t afford it you will just need to accept it. Don’t increase your mortgage terms and definitely don’t accept on a low interest rate that will rise to something that you absolutely cannot manage, just to get the house. It won’t be worth it if you can’t enjoy it due to money worries.
Consider a different place
Your heart could be set on a location that you have had nestled in the back of your mind for years, but the world is a big place – use it to your advantage. You could go anywhere, especially if you can take your work with you or have transferable skills for another job in another city. Think about interstate price changes; a house in inner-city New York will be almost triple that in North Carolina. If it is more for your money that you are looking for, these are the things to think about.
Budget for different things
Think outside of the box and set money aside for those things that you know you will need during your move. It could be putting thought into moving companies that you will need to use and shopping around for the best deal, or even the paint that you will need to redecorate when you get there. It can all start to accumulate the more that you try and fit in, so only think of the necessities that you know you will need and try and put the less-important stuff off until a later date. It gives you more time to save for what you need.
Think about amenities
If you have a family, will they be close enough to help out with childcare or will you have to pay out for it? Are there supermarkets close or will it require a longer journey/service charge for internet shopping? Will the commute to work start to add up on fuel? Although these may seem like quite small things to consider, they will all combine to make one huge bill at the end of the month, which you may not be able to afford.