How to Avoid Being "House Poor" After Purchasing a Home

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The term "house poor" refers to situations when people own homes that they cannot afford. Most of their money goes towards their house expenses, leaving them without any extra money for other things. Approximately 40 million Americans fall into this category. They own homes they cannot afford. Therefore, they are house poor. If you want to buy a house and avoid being house poor, you might want to follow these essential tips when buying a home.

Research the Total Costs of Owning a House

First, you might want to start researching the total costs of owning a house because it is more costly than a monthly mortgage payment. When you own a home, you must also factor in these expenses:

  • Homeowner's insurance premiums
  • Property taxes
  • Homeowner's association fees, if applicable
  • Utility bills
  • Routine maintenance the home needs
  • Repairs that you will need for your house

This list covers most of the costs of owning a home, but you might also have other costs. Adding up the approximate costs for every household expense you will have can help you determine the true cost of homeownership. Knowing these things can help you pick the right house to buy when you begin viewing homes for sale.

Stick With a Budget

Secondly, to avoid becoming house poor, you will need a budget. You will also need to stick with a budget. You can base your budget on a monthly payment amount, but you should carefully consider this before setting your budget. For example, if you feel that you can afford a $1,500 house payment, you might be able to buy a house for around $300,000. After considering all the extra costs of owning a house, though, you might decide to lower the budget amount to $260,000. By doing this, you will have a more comfortable house payment to make. As a result, you can avoid becoming house poor.

Other Tips to Follow

To avoid being house poor, you should limit the homes for sale that you view to houses that fit your budget. If you do not look at homes over this amount, you will stick with the amount you can afford. Secondly, always get a home inspection before closing on it. By doing this, you can learn about the home's condition and avoid buying a house that needs a lot of work.

If you have questions about homes for sale, talk to your local real estate agent.

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4 February 2021

An Unplanned Move

Have you recently found out you’ll soon be moving to a new location? Perhaps, your employer is transferring you to another branch of the company in a different city. Or, you may need to move near a family member in order to take care of him or her. Regardless of your unique situation, you might worry you won’t be able to find a wonderful place to live in your new city on your own. Consider hiring a reputable real estate agent to help you with your house search. This professional should have in-depth knowledge about your new area. On this blog, I hope you will discover the many advantages of hiring a real estate agent during an unplanned move. Enjoy!