Buying a first home

When one makes up their mind to buy a home/investment it is easy to get carried away about the purchase and gloss over the extras. There are costs that must be taken into account and added to the purchae price which will eat into the capital saved.  Often these costs are not discussed at the time of purchasing. Be clear of your final figure when negotiating the loan. The kind of extras will be:

• The Agent's commission
• Solicitor's fees
• Surveyor's fees
• Building/pest inspection
• Rates owing for the ensuing period
• Interest on borrowings
• Costs to bring the building up to a usable condition/repairs
• Stamp Duty
• Bank fees to set up the loan
• Insurance for house and contents
• Maintenance

The greater the deposit the lower the repayments.  Low repayments adds up to lower risk.  Chapter 10 talks about What If?

If a couple have two incomes the idea would be to save one wage and live off the other.  This is a smart idea for the future planning of your family.