Do your own sums
As this video for ING’s Be Good at Money explains, it’s worth doing a thorough analysis of the fees and bills you can expect once you are a homeowner. Ask yourself, “will I still have enough money left over each month for things I enjoy?”.
The answer might challenge the idea of buying the most expensive house your bank will finance.
Personal “stress test”
Doing a “stress test” of your finances is a way to check how resilient they are. Ask whether you will still be able to stay afloat if interest rates go up or your circumstances change.
There are other, less obvious aspects to consider. If relocating, think carefully about a house that involves a long commute from your work. Can you really afford years of increasing travel costs and lost time?
The video says: “shop around for a well-priced property that’s right for your circumstance and you’ll get the full pleasure of home ownership with far fewer headaches”.