The Costs Of Owning A Home Keeps Going Up
And that’s why you need to make sure to have money leftover after closing. That means just because you pay so much in rent per month and your mortgage payment will be the same or less that you can afford to buy a home. There are additional expenses with owning a home and you need to be prepared. Especially here in Fort Lauderdale and South Florida with a lot of insurance companies getting ready to raise their yearly premiums.
“Homeowners should have 1% of the purchase price of their home in savings for improvements and surprise expenses, he says, “That is the absolute minimum. It’s better to have 2% to 3% socked away somewhere.”
Since a lot of first-time homebuyers might not have this I guess it’s a good thing they are getting the tax credit. However, my concern is that if someone has a habit of not being able to save the chances are that they will take the tax credit and spend it on material things. I know some would argue that is the point of the credit to stimulate the economy but if they end up going into foreclosure we are going to go through this housing mess again.
Just be careful when buying a home and have money saved AFTER closing.