“I’ve been saving towards the deposit on a house for a couple of years. Given the rising real estate prices, I think I should try to buy a home now, but I’m not sure if I can manage the mortgage payments. How can I know if I’m really able to afford to purchase a home?”

The real estate market boom has led to rapidly increasing housing prices and consequently, diminishing hopes of acquiring dream homes. The temptation for some anxious homeowners-in-waiting is to buy quickly before prices get higher, without knowing if their financial position really allows them to afford it.

Last week we looked at the pros and cons of buying a home versus renting a property. If you’ve decided that owning your own home is an important goal, you have to examine your finances to ensure that you’ll be able to meet this major commitment.

The first thing to consider is: what are all the costs involved in buying a home? Continue reading Can You Afford To Buy A Home? →