Owning a new home is a joy that most couples look forward to with eager anticipation and pride, but it does come with a lot of responsibilities. The truth is that managing the financial aspects of the huge expense is definitely not easy these days.
There are so many things to consider, which range from finding the ideal environment for raising your children in, to the actual financial aspects such as monthly payments, taxes, and home insurance premiums. Keeping everything in mind, here's a small checklist of financial considerations that should be on the minds of every couple who are on the lookout for a new home to raise an expanding family.
Cost to Income Ratio
Nothing is more important than the cost to income ratio, because there are far more important things in a child's life than some extra outdoor space. Sit together and ask yourselves the following questions to know whether the cost to income ratio for the new house is something that can be considered practically affordable:
After the down payment, insurance premiums, and the monthly mortgage instalments, can you still lead a good life?
If the answer is yes, can you start saving within the next year at the latest, without sacrificing too greatly on your quality of life?
If you have a newborn or you are expecting, have you factored in the expenses ahead and in the near future?
If you have plans of having more children later, have you factored in that cost?
The College Fund
The opinions may and will differ, but facts don't lie. Statistics show that students who attend a good college for professional education are significantly more likely to succeed. They also earn more on average, so you really need to consider that college fund even before the kids are born, or at least, as soon as possible anyway. If you cannot find a way to accommodate the expenses of your new home and start saving up for your child's college fund for the foreseeable future, look for something cheaper.
Home Insurance Comparison for Paying the Lowest Premium Possible
House loans last for a long time, that is 25 years on average to be precise. Therefore, factoring in the mortgage, taxes and insurance costs should be your first priority, because they will affect the future of you and your children for a long time to come. Choose a property that doesn't make you sacrifice too much for too long, or you will come to regret it.
As for the price of insurance, pay a visit to the home insurance comparison website Quotezone first, before choosing your policy. They provide a neutral platform for home insurance comparison so that homeowners can get the best possible deals from top insurance providers in the UK. The money you will save each year will add up to a significant amount in time, and as your children begin to get older, you will come to appreciate the extra savings more as well.
One should always plan for the future while estimating costs, but making expensive plans based on the hopes of future pay boosts is most certainly a common but disastrous mistake. Keep that point in mind while choosing your new home.