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Buying a House?

Make realistic, not emotional decisions when buying a house.

Whether this is your first home or your fifth, there are several important factors to keep in mind before starting your search to buy a house.

If you're familiar with this old saying, then you already know that the three most important considerations are reputed to be... location, location, and location.

People tend to choose a location with their hearts more than their heads. However, keep in mind that location is probably the most critical aspect of your real estate investment.

Your idea of the perfect home may not be affordable in the downtown core, so if that's really the kind of home you want, you may have to consider the suburbs.

On the other hand, if your heart is set on living downtown, you may have to make some concessions in your home's features to find something that you can manage affordably.

Making realistic decisions starts by determining what's most important to you and work from there.

Buying a house in the suburbs may be worth considering as these homes tend to be larger and offer features such as a private driveway, pool-sized lots, ensuite baths and large rooms.

If those are your priorities, then it's probably more realistic to plan on the commute rather than vainly searching for your dream home in an area where you simply can't afford all the features you want.

Conversely, you may decide that it's worth scaling down your expectations to move into the city. In this situation, it's usually a good idea to opt for a smaller house in a good neighbourhood because you're more likely to see an appreciation in resale values.

Are Amenities Important To You? Do you want to be near recreation centers, public transit and shopping? Why not make a wish list of the features you're most interested in. Include items such as: number of bedrooms and bathrooms; safe neighbourhood, and a nice garden. That "wish list" usually represents the emotional side of the buying a house decision.

Then add the more realistic requirements, such as: no major repairs or renovations required or the ability to add on later.

An experienced real estate agent can help you refine your list and then identify the areas with homes for sale that are best suited to your needs.

Once you've decided where you want to live, the next decision is purely financial. Be realistic when it comes to the amount of money you're willing to spend on buying a house.

Conventional wisdom says that about 25 to 33 percent of your monthly income before taxes should be spent on housing.

While this may make your dream home out of reach for now, at least it gives you a realistic idea of what's affordable.

(Have you checked your credit score and been pre-qualified for buying a house?)

Keep in mind that the mortgage is just one of the expenses included when buying a house. There are closing costs including the expense of a home inspection and legal fees. Home insurance will also have to be purchased.
Don't forget you'll have to pay the movers too!

Once you've moved, there may be decorating or home improvement costs. Of course you'll have to consider the monthly carrying costs such as property taxes and utilities including light, heat and water. An experienced Real Estate Professional should be able to help you determine what you can expect, and what you can comfortably afford.

Don't let any of this discourage you from pursuing your home ownership dream.

If you know all your facts going in, then it simply helps you to make the right choice... a realistic one, rather than an emotional one.

Rather than buying the beautiful but currently unaffordable mansion on the hill, you may find that true happiness rests in the peace of mind that comes with owning a townhouse or a condominium or a semi-detached house.

An experienced real estate agent can show you a variety of homes in your price range, and help you find a home that suits your financial as well as your emotional needs.

At times paperwork and emotions take over, but just think that on moving day, you'll be in your new home sweet home!