of your home’s value each year on upkeep and repairs. If you buy a $250,000 home, aim to save $520 to $625 per month.
STEP 4: RESEARCH HOME SALES AND WHAT YOU CAN AFFORD
Do some research into recent home sales in the area in which you’re interested in buying a home. Find the average price, the highest prices, and the lowest prices. Look into how long they’ve been on the market. Determine what you want in a home (e.g., number of bedrooms/bathrooms, a garage, a yard, a basement, etc.) and what you can afford. You can figure out how much you can afford using online calculators that consider many different variables. In general, when it comes to conventional loans, expenses related to your home should never exceed 28% of your gross monthly income, says Susan Tiffany, a retired director of Personal Finance Publications for Adults for CUNA (Credit Union National Association). (source: Bankrate.com).
HOW TO GAIN AN ADVANTAGE:
While there are many benefits to renting a place over buying your own home, the advantages of owning outweigh the advantages of renting. Renting is sometimes the necessary choice, depending on your situation and needs, but it’s generally considered a short-term housing solution.
The bottom line is that in the long run, owning your home
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