When it comes to buying our first home many of us don't think of the additional expenses associated with buying a home like property taxes, insurance, utilities, maintenance cost, etc we just think about the mortgage payment. 

In my almost 15 years as a Realtor® I have seen the downfalls of this mindset...I call it being house poor. 

What is house poor?

Being house poor is when somebody purchases a home and that's the only thing they can afford. At the end of the month there is no money left for anything else. This can be incredibly disappointing to miss out on fun things like vacations, but it can also add a lot of stress when an unforseen circumstances occur.

How do you avoid being house poor?

To avoid this common trap there are a few things that a person can do. Firstly, you want to take an honest look at your budget. If after reviewing your budget you know that you can spend $3000/month on house costs you need to ensure that covers all house costs. The total of the mortgage payment, monthly taxes, home insurance, and utilities should all combine to be at or less than that $3000 budget. If you fall in love with a house that will be higher than the pre-determined amount I recommend stepping back. Evaluate your budget to see if you can cut costs elsewhere. If not, determine if the home and what it offers will outweigh the potential longterm sacrifices.

The next thing I recommend is to be patient. Buying a home is an exciting time, but once a person decides it's time to buy they can often get impatient. In a seller's market this can get quite discouraging as there is often competing offers, and houses don't last on the market. For many buyers, this shakes their confidence and causes them to either settle on a property that doesn't meet their needs or they exceed their budget in desperation of owning a property. With my clients, I encourage them to make a list of "must-have's" and be uncompromising on that. Beyond that, we have to trust that the right property will come along for them, because it will!

If you are thinking of buying a home in Grande Prairie and want an experienced Grande Prairie Realtor® who has been around for years, trust Helen Harder Real Estate.

I work harder for you!