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Buying a Home: Steps to Buying a Home | Pros & Cons

If you are searching for steps to buying a house on the internet or maybe you are a first time home buyer who wants houses to buy then, you’ve come to the right place. Here, we will help you with buying a home, we tell you the pros and cons of buying a house. So, Read the complete post in order to get good and correct knowledge because you also know half and incomplete knowledge is very harmful.

Buying a Home: Are You Ready to Buy a Home?


Homeownership is a great long-term investment for many people. But

sometimes it makes more sense to rent until you’re financially ready to buy a

home.

If you’re buying on a shoestring budget with 5% down at the maximum

purchase price approved by your lender, you’re probably better off renting a

while longer. This will let you save up a larger down payment and an emergency

the fund, so you’re not strapped for cash and within a mortgage payment of losing

the home you’ve worked so hard to buy.

Are you still on the fence about buying? Here are important things to

consider when deciding whether you’re ready to buy.

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Read More for more information: Mortgage Burning: 5 Key Mortgage-Burning Takeaways

Buying – steps to buying a house

should you buy a home
should you buy a home

 

Pros – buying a home

Forced savings: Most people put their mortgage ahead of all other debts,

and for good reason—if you stop paying your mortgage, you’ll no longer

have a roof over your head.

Good debt (most of the time): When you buy a home, you’re investing in

something that is likely to go up in value (in the world of finance, it’s

known as an appreciating asset). One day you’ll (hopefully) be mortgage-

free.

Income: A home isn’t just a place to live. If your home has a basement

suite or is a duplex, rent out the unit and pay down your mortgage even

faster.

Leveraging: Leveraging means you’re borrowing someone else’s money

(the bank’s) to buy an asset (a home). If all goes according to plan, you’ll pay off your mortgage, and with the likely rise in real estate prices, your

home will be worth a lot more.

Read More for more information: Landlord: What are the Pros and Cons of Landlord

Freedom and privacy: You don’t have to ask the landlord for permission

to paint or landscape (you own the place).

Tax credits: If you’re a first-time homebuyer, you can claim the home

buyer’s tax credit (HBTC). This non-refundable tax credit is based on an

amount of $5,000 multiplied by the lowest personal income tax rate (15% in

2016). In 2016, you’d pocket about $750 by claiming this credit. If you’re

buying a new home for less than $450,000 and it’s your principal residence,

you may qualify for the GST/HST new housing rebate, as well.

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Tax shelter: In most cases when you sell your principal residence, you

won’t have to pay a dime in taxes on the gain in the value of the home

(although if you rent out part of your home or have a home-based business

and claim capital cost allowances, you may have to pay capital gains tax).

Home equity: Once you’ve built up some equity by paying down your

mortgage, you can tap into your home’s value and borrow at a super-cheap

rate with a HELOC.

Read More for more information: Debt Consolidation: Best Debt Consolidation Loans For Bad

the best time to buy a house
the best time to buy a house

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Cons – buying a house

Closing costs: Unless you’re planning to stay put for five years or longer,

you’re generally better off renting. Closing costs from buying and selling

your home can easily wipe out any gains you made from buying.

Carrying costs: On top of your mortgage payments, you’ll have to fork

over money for utilities, property tax, and home insurance. These carrying

costs have a habit of rising a lot faster than your paycheque.

Maintenance and repairs: Over the years, you’ll have to spend mega

bucks on a new roof, furnace, windows… the list goes on. Budget from 3%to 5% of your home’s value for these costs. For a $500,000 home, that’s up

to $25,000 each year.

Take time to weigh these pros and cons. Buying or renting isn’t just a financial

decision, it’s an emotional one. Consider all the factors and decide what’s best

for you.

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Read More for more information: Home Insurance: 6 Ways to Save on Home Insurance

Four Things to Consider Before Buying

  1. How long do you plan to live there? If you don’t plan to stay put for at least five years, you’re likely

better off renting.

  1. What are your long-term plans? Are you planning to start a family? Would you mind relocating for a

job promotion?

  1. Can you afford a home? Before you start house hunting, get pre-approved for a mortgage to see how

many homes you can afford.

  1. How will a home affect your monthly budget? Do up a budget as if you already owned the home and

see how it would affect your lifestyle

buying a home, first time home buyer, buying a house, houses to buy, steps to buying a house

Read More for more information: The Psychology of Debt: What Are The Psychology of Debt

FAQ

What to do to buy a house?
How to Buy a Home – Step-by-Step Guide
Step 1: Finalize the budget
Step 2: Nullify the location and property type
Step 3: Explore property rental rates
Step 4: Resale value of the property
Step 5: Check loan eligibility and EMI
Step 6: Stamp Duty and Registration Fee
How to find a house for rent?
Today we are talking about 5 such apps, which will play the role of a ‘broker’ in finding a rented house for you, that too absolutely free:
99ACRES. This popular property portal is 99acres. ,
MAGICBRICKS. The Magicbricks app has a GPS feature, through which you can choose the house according to the location. ,
OLX.,
NESTAWAY.,
FLAT CHAT.

When should I move house?

  1. If you see this Vastu defect, then immediately shift from home.
  2. If you see that the North and East direction is closed or it is very full. ,
  3. If you notice that the North-East part of the property is also not of height.
  4. If the western part is very open then change the house.
  5. If there is a water tank, a hole, a basement, or even a well in the west zone.

Can a tenant become a landlord?
What does the law say?

According to the experts of the law, if seen, the tenant cannot claim any property and he does not have any right over the property of the owner. But, it also does not mean that he cannot do this, it depends on different circumstances.

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