How Much Home Can I Afford

How Much House Can I Afford

How Much House Can I Afford is answered by determining the best home for you. Mortgage loan calculators, home loans or how much I can borrow need to be looked at after you have determined the best home for you.

Before you ask the question How much house I can afford, you need to determine the best home for you. In other words, create a list of your needs and wants for the home you wish to buy. Generally, most people have an idea of how much money they can spend on a home; however, it seems that most people do not sit down and determined their needs and wants in a home before they start inspecting. Distinquishing needs and wants will determine how much house I can afford.


Create a List of Needs and Wants

Creating a list of needs and wants will help you appreciate the difference between needs and wants. This is important because your home affordability may meet your needs but not your wants.

Create a List of Needs and a List of Wants - Your list may look like this:

1. Type of home

  1. modern
  2. federaton
  3. not important
  4. etc. etc. etc.

2. Condition of home

  1. renovated
  2. partly renovated
  3. unrenovated
  4. etc. etc. etc.

3. Outlook of home

  1. bush
  2. leafy
  3. water
  4. not important

4. Aspect of home

  1. North
  2. East
  3. South
  4. West
  5. not important

5. Bedrooms in the home

  1. 1
  2. 2
  3. 3
  4. 4
  5. 5 or more

6. Number of Bathrooms

  1. 1
  2. 2
  3. 3 or more

7. Ensuite in home

  1. yes
  2. no

8. Car parking

  1. garage
  2. carport
  3. off-street
  4. not important

9. Exterior of home

  1. lawns
  2. courtyard and gardens
  3. pool - tennis court
  4. not important

10. Special requirements

  1. Close to public transport
  2. Close to work place
  3. Close to shops
  4. etc. etc. etc.

Of course, you can extend the list to meet your requirements.

The primary goal of the list is to distinquish between needs and wants so that you can determine How Much House I Can Afford.