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Why You Should Go to a Financial Planner Before Buying a House

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Buying a house is one of the biggest financial steps you will make. It’s likely to be the most expensive purchase you will make in your life and most people pay for their homes for at least 15 years.

Although it’s an expensive purchase, it’s worth it because real estate properties appreciate in value. You can build your equity and sell your home at a higher price, especially if you decide to do improvements in your home. 

But before you purchase a house, it is always prudent to first consult a financial planner in Vancouver. A good financial planner in Vancouver can help you assess rewards and risks. By assessing rewards and risks, you can make a better decision, especially when it comes to how much property you can afford.

For instance, people over the age of 40 are generally advised not to go beyond a comfortable 1.8% of their annual income when it comes to their mortgage. This is to ensure that they can still save up to 12% of their income and save enough for retirement.

A financial planner in Vancouver can help you assess your capability to pay for a mortgage and determine the best budget that will suit your needs. It’s not uncommon for people to go over budget when buying a house and end up becoming house-poor. Too often, buyers don’t see how much they are spending or agreeing to spend until they do the math and realize their monthly mortgage is more than what they can handle.

A good financial planner in Vancouver helps you in achieving a balance between your wants and helps you realize your future needs and how your choice of housing might affect your life later. There are still other expenses that you will have to consider, especially if there are changes in your life such as having a new child or medical expenses.

Going over budget when buying a house can eventually make it more difficult to reach financial independence, especially if you encounter problems such as the loss of a job. Keep in mind that debt is a form of risk, which is why you should always take cautious steps before submitting yourself to them.

Choosing the right financial planner in Vancouver is also important if you want the best advice. Fee-only financial advisors can give you impartial advice. Check their credentials and also get recommendations from the people that you know.

Make the best decision when it comes to buying a house. See to it that you are in a financially sound position to purchase one and choose a house that you can afford. Consider your closing costs as well. Many people fail to factor in closing costs when deciding to buy a real estate property.

Matt Knowles is the author of this article. To know more about Estate Planning Vancouver please visit our website: zlc.net

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