The REAL HARD TRUTH about Homeownership

by Loreena Yeo on March 7, 2011

Your home is truly a blessing to you when you are ready for homeownership. What would that look like? Homeownership is a responsibility and should not be awarded hastily. Why?

Because a bad homeownership that ends up in foreclosure will pretty much leave a very bad taste in your mouth about the whole experience. But when done right, it is one of life’s most satisfied experience.

So, how can you enjoy a blissful homeownership?

Before buying, make sure you sit down and assess your income and your expenses. Have a budget and make sure that your mortgage (including property taxes) are well within your means. Have no consumer debts (credit cards, auto loans, school loans, etc.) and you have savings (3 – 6 months) worth of living expenses. This is a rainy day fund.

Murphy’s Law states that “things will go wrong in any given situation, if you give them a chance”. Murphy will move into your home because life happens whether you own your home or not. If you have your budget planned too “positively” with no margins to spare, things break down, cars break down and people get sick. If you had paid off your consumer debts, now you have extras to pad life with when you do not need to make those minimum monthly payments.

It is a choice to make today for better, and be well-prepared for tomorrow.

Can you still enjoy your homeownership without those recommendations?

Sure you can. Provided that life is always on your side. And “life” never happens to you. I have seen homeowners budget themselves too tight and an increase in $100/month in property taxes would throw off their monthly budget. Then, they go into a cycle of constantly refinancing for payments to decrease. Every two or three years, they refinance the home back into a 30-year note. These are real and it’s happening to homeowners all over.

Don’t be a statistic. Have a blissful homeownership by setting your foot off  on the right path. I promise you that you will be glad you did. You will be sleep better at night and enjoy your companies and parties in your home.

{ 2 comments… read them below or add one }

Rich Cederberg March 20, 2011 at 9:30 pm

Loreena, When I was a little boy I heard a lot about “rainy day” funds. Now that I’m adult I’m hearing about them again like they are a new invention. They are and always have been an excellent idea and a must for homeowners.

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admin March 20, 2011 at 10:54 pm

Rich,

You are absolutely right. It is like the bell bottoms are making a come back. :)

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