Financial problems after buying a house
Owning a home of your own is not easy, but it also gives you many benefits that renters will never get.
And so, “buying house” comes with responsibility, which is understandable. However, anyway, understanding the changes in financial matters to control, plan accordingly before buying to have leisurely days, live a happy life right at home. Your house is still a necessity, right?
This article will suggest to you the financial changes you may face after buy house!
With renting, you don’t gain any value that could help yourself in the future. But buying a home is distinctly different. Not to mention, the house sometimes also helps you profit with investment values. However, with it comes responsibility, of course.
1. Pay for more expenses
If you rent a house, you only need to pay expenses such as rent, electricity and water, service charges (including: internet, general cleaning). In which, each amount has a fixed level as agreed at the beginning. Other than that, there’s almost no need to worry too much.
However, when you switch from tenant to owner, you may face financial responsibility for your space. This cost is generally referred to as repair and maintenance costs when needed. For example: unfortunately broken glass, broken air conditioner or water heater, renovating the house if it is too dilapidated but before, when renting a house, you can choose to move out when you no longer like it there.
Not to mention, there may also be a number of additional fees at apartments such as parking, apartment management fees, service fees (based on the area of the house),…
2. An emergency reserve is essential
The Forbes experts added: “Paying off your mortgage while you work allows you to save large sums of money in retirement. For those who have retired and realized their income has decreased after receiving benefits. Social Security or withdrawing from retirement can be the difference between a comfortable life and a life of hard work to pay off debt.”
While it can be hard to imagine what your post-retirement life will be like, especially for someone who is young and has never had a real estate transaction, the idea of saving now is still something you should consider. think.
Accordingly, buying a home will force you to create some savings. For many people, especially those with a penchant for spending money, buying a home will be the factor that sets them apart. The reason is, you will always have to pay monthly mortgage interest, which is completely different than when you rent a house.
Solid finances will help you relax and feel much more secure after owning your own home.
“Owning a home doesn’t increase your net worth, nor does it eliminate the need for financial responsibility, but it will provide the foundation on which to build wealth.”Forbes confirmed.
Thus, when the savings account is meager, it will also be proportional to the risk when you own a house. Not to mention the interest that needs to be paid every month, the expenses incurred are enough to make you aware of the importance of this.
Accordingly, experts recommend keeping expenses for at least 3-6 months in a savings account to be safe and avoid spending money on other items. This does not include mortgage payments, utilities and other regular bills.
Remember, having an emergency reserve is essential when owning a home.
3. There is no such thing as “late payment”
If, when you rent a house, you are due to pay your rent, but your salary is delayed or for some other reason you can’t pay, what you can do is talk directly with the landlord about the situation. your consent and chances are, you will get consent.
But when it comes to buying a home, it’s different, especially with a mortgage. You may either be charged a late fee, or have your property confiscated if the delinquency period is extended beyond the allowable period.
Therefore, pay attention to financial security after buying a house.
Before buying a home, you need to consider the following:
– Learn more about the project as well as the loans;
– Eligible for a mortgage loan in case you can’t buy it outright;
– Have a stable source of income;
– Ability to afford the ongoing monthly, tax, and maintenance payments that come with home ownership.
at Blogtuan.info – Source: Afamily.vn – Read the original article here
