You have enough put aside for a sizable downpayment for a condo your Realtor just found for you. The location, the amenities, the set up - everything about the condo is perfect. You can’t let this one go. But can you really afford to buy it considering all of the new expenses you’ll have?

Well, for the novice homebuyer, costs related to homeownership, such as taxes, maintenance fees, mortgage payments, and if applicable, utilities, can all seem a little daunting at first. You may think that you won’t be able to afford everything. But generally, if you add up all of these costs and they don’t go over 40% of your total household income (before taxes, of course), then you’ll be alright. Enough will be left over for daily expenses and savings.

This entry was posted on Thursday, May 8th, 2008 at 10:01 am and is filed under Financial Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.