Table of Contents:
Use the TOC to navigate your way through the book. When you select a chapter the sections within will be revealed. Also, as you scroll down within a chapter the section you’re in will highlight.
Searching:
At the bottom of the book you’ll find your search field. When you enter a search term the results will slide up. Click one to be taken to that area of the book.
Study Aids:
If you’re purchased the All Access Pass and are ready to challenge yourself, click the Study Aids tab at the bottom of the book to reveal your Study Aid choices. Use the drag handles on the left to resize.
Chapter 9 Buying a Home
Introduction
Be it ever so humble, the “biggest” purchase you ever make may be your home. Unlike most other consumer purchases, a home is expected to be more than a living space; it is also an asset that stores and increases value. The house has a dual financial role as both a nest and a nest egg.
© 2010 Jupiterimages Corporation
There are substantial annual operating expenses for repairs and maintenance, insurance, and taxes. Maintenance preserves a home’s value, insurance protects that value, and taxes for community services both enhance and secure its value.
A home purchase is typically financed with debt that creates a significant monthly expense, the mortgage payment, in your budget. A mortgage is a long-term debt that obligates your cash flows for a long time, perhaps even reducing your choices of careers and your mobility.
Your choice of home reflects personal factors in your life. These factors include your personal tastes, your age and stage of life, your family size and circumstances, your health, and your career choices. These factors are reflected in your decision to own a home, as well as in the location, size, and use of your home.