If you have read some of my posts you may know that I am somewhat against buying a house.

I feel that it is something that people are ill informed about. They then go and make an emotional decision that will impact their lives for years to come.

And let’s not forget that the word “mortgage” means “until death”.

People buy more house than they can afford. They have not done their homework on all of the extras that come with home ownership.

  • Taxes
  • Utilities
  • maintenance
  • unexpected emergencies

The other problem is that people think that if they extend the amortization period they will have lower payments and thus can afford a more expensive house.

What they fail to realize is that they are going to be paying thousands more in interest over the life of the mortgage.

Okay, all this being said there is a right way to buy a house.

You have to put at least 15% down. Preferably more. Zero down or 5%? Forget it. You’re not ready.

Really assess your housing needs. Buy a smaller house. It will be easier to heat.

Think about buying a house that a bank has foreclosed on. You MAY save thousands by doing this. I paid cash for a house this way.

Buy a house with an apartment in it or the potential for an apartment. This can help tremendously in paying your mortgage. I rented out rooms in my first house. It was the only way I could be a home owner.

Make extra mortgage payments. There are different types of mortgages that allow extra payments. You end up paying the loan off faster thus saving thousands in interest payments.

Set up your payment schedule for “accelerated bi-weekly” You end up making an extra payment per year. This shaves a few years off the life of your mortgage.

I get the allure of owning a home. Just remember that you don’t own it until it is paid for. Your job is to pay your house off as fast as you can.

Purchasing a house that you can actually afford and following the tips above is the right way to buy a house.

Please share and please comment.

“Live Simply”

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2 thoughts on “Is There A Right Way To Buy A House?

  1. I understand not buying a house if you are a minimalist, to a point. But – what about when you want to retire? You won’t be able to afford rent – how will you pay for housing?

    1. What?? Won’t be able to afford rent?? I don’t understand this question.

      I can afford rent now. I am saving/investing half of every paycheck. Plus my pension from work plus the rrsp’s from my work plus my Canada pension when I am 60(early) or 65. I am looking at 800000 to one million dollars when I retire. How could I NOT afford rent.

      Plus I will probably move to a warmer climate in a developing country. Ecuador, Belize, Nicaragua, etc. Good infrastructure and new condos on the beach for 35-50000 dollars.

      So many people are HOUSE POOR. This is what I am getting at. Buy a house only if you can afford it and STILL save for your retirement.

      My parents are putting their house on the market this week. It is paid for(has been for 25 years.) They cannot afford to stay. Oil heat-1800$ this winter. Property tax, ongoing maintenance. Home ownership makes sense IF you buy a house you can actually afford, and/or you get a good deal.

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