Many people have their dream house. Mine has a large backyard so that my future kids can have their friends over to play, watch movies outside and maybe even have a tree fort. It has 3-4 bedrooms, a finished basement that doubles as a home theatre and a massive kitchen. My kitchen has an island with a sink in it, a double oven and one of those fridges that has the freezer as a drawer at the bottom and the fridge has double doors with an ice maker in one door (yes, I have a dream fridge). It is also grey stone and not that yellowish grey, grey grey of various hues to provide texture and character. There is also a double garage, I live in Canada, I want to put my car in the garage in the winter and maybe even an attached workshed for my husband to make things. My house sounds awesome doesn’t it? The big problem is, I can’t afford it… at least right now but that is okay. I don’t want to be “house poor”.
What is “House Poor”?
House poor is when you own a house but can’t afford much else. You can’t afford vacations, romantic dates, possibly even your groceries. My mother got married recently and was combining two homes, Brady Bunch style, so they needed some more space. My mom and her fiancé (now husband) looked at houses but in order to buy a house that met their needs, they would have been house poor, so instead they decided to renovate their current home to accommodate the new family. They decided that they would make some sacrifices in their living situation that would allow them to still go on a vacation or make that impulse buy.
Why is this a problem?
Honestly, this is a big question that I don’t have an answer to. There are many reasons why people end up house poor. Some people take out the maximum mortgage they can to buy their dream house but don’t account for all their other expenses when working out a budget (if they worked on a budget). Some people can afford the house and extras but then job loss occurs and now you can’t afford the things you once did. Maybe people forget about taxes when buying a house, or up-keep costs. There are many, many reasons people find themselves in this situation, some are avoidable and some are not.
How can you avoid it?
Talk to an advisor. Here, at Beg Brothers Real Estate, Brokerage, we have an in-house Mortgage Company that will assist you on your path. They will not only help you get a mortgage, they will counsel you and help you make sure that you can afford the payments without becoming house poor. It may mean you have to give up a bedroom or wait a little longer for that double oven, but it will be worth it. We are here to help you find your dream house but we don’t want you to have to give up everything else in order to afford it. Let us help you afford your dream.
Everyone is family at Beg Brothers Real Estate and we only want what is best for you.
*I am by no means an expert, just someone offering my opinions and insights. If you want some more information about this issue, please refer the links provided.