We all know that buying a house is expensive. But how much money do you really need to buy a house?
Let’s look at the numbers. The average cost of a home in the United States was $273,200 as of May 2017, according to Trulia. That’s about 4 percent higher than the previous year.
If you’re looking for a place with room to grow, consider buying an existing home instead of starting from scratch. You’ll save thousands on your down payment and closing costs, and you could even get a tax break depending on your situation.
And if you want to stay put, there are plenty of communities where homes are affordable and beautiful whether you’re looking in big cities or smaller towns across the country.”
How much money do you really need to buy a house?
Well, it depends. If you’re buying an older home, with a fixed-income and no other debt, then maybe $400,000 is enough. But if you want to buy into the latest housing trend a new condo in downtown Vancouver or Toronto your needs may be much larger.
In fact, if you want to live somewhere that’s more spacious than your previous home and still afford some creature comforts like a gym and pool, then you might be looking at $550,000 to $1 million or more.
A house is not an investment. It’s a place to live. So, don’t get caught up in the idea that you need to pay the full asking price or even the price you can afford.
You will only be able to afford what you can actually pay for. If a house is too expensive for your budget, then it’s too expensive for you.
This is why we recommend buyers set their budgets before they start looking at houses and then stick with them throughout the process of buying a home.
We’ve seen many clients who thought they could afford much more than they did, which led to months of frustration and wasted time. If you don’t know how much money you can actually spend on a house, then how can you expect to know what kind of home will really fit your needs?
If you live in Africa, Asia, Europe & south America be rest assured $250,000 can afford a beautiful house in the city. Before buying a house make sure you have enough money at least $300, 000 upwards.