Why buy a house? The reasons for buying a house may be one of the following:

As an investment property – An investment property is a house which has been bought with the purpose of reselling it, at a profit.

To build a home- Most people buy a house to have a place which they can call home. Buying a house for yourself and your family is a way to secure yourself and your families future. And because your home is an investment as well, you will always have the security of knowing that your house can be sold if you should ever need the money to pay for your retirement care.

How much of a house loan do you need?

The size of the home loan will mostly depend on the size and price of the house you are wanting to buy. Another factor which determines the size of your home loan is the size of the deposit you put down when lending from the bank. The bigger the deposit the less money you will need to lend from the bank. Make sure that you choose a house which is within your budget, even if you have a combined income, you should not be struggling to pay the bond every month. Use one of the many home loans calculators to determine how much money you have left after all your expenses has been paid.

How do I protect my house?

Home insurance is a must for those who wish to protect their assets. A part from having other security measures installed, having home and household insurance is a way to protecting yourself from financial loss due to theft, and damage which is caused either by vandalism, accident or the elements. A large percentage of your income will go towards buying your house. It then only makes sense to protect your investment from situations which are out of your control.

Buying a house is a serious business, and buying a house is not a purchase which people take likely. When it comes to buying a house you have to make sure that firstly you can afford the financial responsibility. And secondly you need to do all of your research , to ascertain whether the house you choose is situated in a place which is convenient for all your family members. You will need to consider factors such as buying a house which is close to schools, public transport and shopping centres. You have lots to consider before buying a house, get clear as to what you want and happy hunting!

For more information on house buying, go to http://www.isureins.co.za

A lot of preparation is necessary before you can grab the champagne bottle and organize a house warming get together!

House buying takes an extended obligation. It is very important know that purchasing a house does not come with a 30 day “satisfaction guaranteed or your hard earned money back” option. The average home finance loan is payable over 20 or 30 years – that’s between two hundred and forty and three hundred and sixty months! Can you commit to such a massive obligation? Are you in a risk-free job where you will receive enough money to pay your month-to-month installment? Are you (and this seriously isn’t joke!) in a committed relationship with the individual you would like to share your house buying responsibility with?

Determine a maximum amount of money that you will be in a position to afford per month and comply with that! Don’t forget that your month to month payment won’t be your only outlay of money. You need to pay for water and electricity, levies, rates, taxes, insurance and in some cases a security company! This might be modest amounts if viewed individually but can swiftly add up to a lot more than your monthly income! Furthermore make provision for whenever the interest rate might climb. If you purchase your house at the absolute ceiling of what you can afford, you may find yourself having your home repossessed with a rapid increase in the interest rate.

Do your research on the house you would like to buy. If it is possible employ a property inspector to completely scrutinize the home. There could possibly be pricey problems lurking around the corner. A wall structure with considerable water damage can quite easily be concealed with a layer of fresh paint. The house might therefore appear to be in top notch condition, but after a few weeks in your new place the entire wall might unexpectedly collapse! The electrical cabling of the house can be just as full of surprises! Make sure that a professional electrician inspects the electrical elements of the house and property in question.

Have a good grasp of what you’re really hunting for in a house. You should know if you’d be satisfied with a carport or if you’d prefer a garage area. What about the size of the back garden? Should the home be dog friendly? Which neighbourhood would you prefer to reside in? Will you be satisfied in a flat or an apartment or do you need a standalone home? By having a good grasp of your preferences it would make your house buying journey that much easier!

Secure the very best mortgage loan possible. If you are shopping around to get a home loan, don’t settle on the first house loan that you are offered. Consult with various experts until you discover a deal that you’re entirely satisfied with. Negotiate! Financial institutions are in considerable competition with each other and will typically offer you a better offer in the event that they’re at risk of losing your business.

Above all – enjoy yourself !! Do your research effectively and enjoy looking for the ideal house!

For more information about house buying visit the website http://www.isureins.co.za

Becoming a parent means getting your financial house in order. While you could let your finances slide a bit when you were single, you now have people depending on you. Doing some basic financial planning today can mean the difference between making your golden years happy and productive or stressful and uncertain. Whether it’s your your mortgage, insurance, or savings, every aspect of your finances should be reviewed to make sure your family is safe and secure.

Here are the 8 most important financial steps you can take for your family:

1. Buy life insurance. When you were a swinging single you didn’t have to even think about life insurance. Now that you have a family that’s depending on you, it’s imperative that you and your spouse get a life insurance policy. Term life insurance is usually sufficient and you want to make sure you get enough that your family can continue to live comfortably if you pass away, so think about at least $500,000 in coverage. If you’re healthy, term life insurance is not a huge monthly cost and it can really put your mind at ease. Use one of the many life insurance comparison websites to instantly get a rate quote.
2. Build up a rainy day fund. Life is unpredictable and having a family multiplies that unpredictability. Unforeseen medical expenses, automotive costs, or even natural disasters can quickly put a dent in your monthly budget. Take the time now to sock away at least three to five months worth of living expenses and put that money in a savings account that is accessible. But remember – this is emergency money only, so don’t go blowing it on a big vacation.
3. Review your health insurance. Medical expenses are eating up an increasingly huge chunk of the average American family’s income. It’s time to review your health insurance to make sure you have enough coverage and that your deductible isn’t too high. If you have children, chances are you’re going to the doctor on a regular basis. While having a high deductible is a good way to save money on health insurance while you’re single, frequent doctors visits will mean a lot of money out of your pocket. Review last year’s medical costs, see how much you had to pay, and adjust your deductible accordingly.
4. Buy a house. Although the housing market has been in a tailspin for the last several years, buying a house has traditionally been one of the best investment vehicles for families over the long term. Take advantage of today’s historically low interest rates to lock in a lower cost 30 year fixed mortgage. While it might feel like a stretch to pay for it now, chances are in 30 years you will be very happy about making the decision to buy.
5. Start a college fund. Sure, when your kids are toddlers college can seem like a lifetime away. But the years pass by faster than you can imagine, so start saving up for college now. Putting away even a small amount every month or quarter can allow the power of compounding to take hold and build up your savings over the long term.
6. Get a will. No one likes to think about death, but if it happens your family needs to be ready. Having a will prepared does not have to cost an arm and a leg – ask around to see which lawyers specialize in this type of work.
7. Plan for retirement. Saving for retirement on top of all your other family expenses can seem like an overwhelming burden, especially in the current rough economy. But like starting a college fund, time is your friend. The sooner you start saving, the longer your money will have to grow. Make sure you take full advantage of any 401k plans offered through your work.
8. Create a budget and track it. You can’t control your expenses unless you know exactly where your money goes each month. Use a program like Quicken or Mint.com to track your expenses and see what the trend is. Are you spending too much on entertainment or groceries? Find where the big expenses lie and figure out ways to cut back. You can also use these programs to monitor your budget month to month. The nice thing about a program like Mint (which is free, by the way), is that your accounts are linked together so there’s little to no manual entering of data. Login at anytime to check how close to your budget you are.

While these eight steps may seem like a huge amount of extra work, you don’t have to do them all at once. Take one item from the list to complete per week and eventually you will get through them all. By the end, you’ll know much more about your present financial condition and will be able to successfully plan for the future.

photo credit: Sukanto Debnath