In a hot property market as we have now it’s very easy to convince oneself to spend a little extra, driven by the fear of missing out (FOMO).
That can lead to years, even decades of housing stress when the repayments significantly restrict your ability to afford other life experiences and transitions that are important to you.
Since housing stress can be a very difficult and expensive mistake to fix prevention is the best option.
From years of meeting people whose home is causing financial stress here are my top 7 signs you’re overspending on a home.
- Life will be boring and very limited afterwards.
- You’ll have no emergency savings left to cover the unexpected.
- Interest rate rises will sink you.
- You’re depending on pay rises to make the house affordable.
- If you need to move home but the ‘value’ is the same or lower you’ll be stuck.
- You can’t afford to keep the house in good condition. (Budget 2.5% p.a. of the building value.)
- You can’t afford other contingencies such as income protection insurance.
To ensure you’re in a strong financial position to buy your home check out my free course “6 Ingredients to Save More While Still Enjoying Life” and the “Savvy Home Buyer’s Affordability Checklist“.