Why i need to buy a house?

Everybody have their own dream house,what type of house is your dream house?

Nowadays,everybody want to buy a house.But before buying a house have you ever consider can u afford to buy a house?If not why are u following the crowds,people buy so you buy.Dont ever buy a property without doing analysis.

Basicly there are two reasons people buying house :

(1) Accomodation

(2) Investment

Different type of house for different purpose.So confirm what is the reason of buying a house before choosing the location and type of property to buy.

So let us go deeper into the considerations that you need to made if you are considering buying a house for accomodation,firstly ask yourself what type of you that you would like to live in?This maybe depending on the area nearby to the train station for commuting to work.Go around to have a look on the area which is suitable to you.Figure out the rental payment for the area of interest.Compare the rental payment and the mortgage payment then only decide whether you should buy or rent the house.

Below are some basic calculations showing how the mortgage of the property:

House=250000(assumption)
Rental=1700per month
Down Payment=50000
Mortgage=200000
%Interest Rate(per year)=7%
Total amout of interest=14000( per year)

30yrs of payment=420000(assumption)
Total Mortgage=620000
Payback period(30 yrs)=360months(assumption)
Monthly Payment=1722.22222per month

Maitainence Fee(for apartment or condo only)=0.15per sqf(assumption)

Dimension of yr house=1000sqf(assumption)
Maintainene Fee=150per month

Total Payment per month=1872.22222per month

It shows that the cost for buying a house is close with renting a house.So now you can decide whether you will buy or rent the house.

The housing prices is booming is also due to the situation which is shown above.The cost of buying a house is close with renting a house.