Step 3 – Plan on unforeseen expenses to surface

A common misconception of pricing a home is if only the mortgage is calculated. As there is also property taxes and property insurance that will increase your overall payment for your home.

There are also maintenance issues that will arise while living in the home that will also require money being invested in order to resolve the issues.

Check out the New York Times’ “Is It Better to Rent or Buy?” calculator, which factors in things such as maintenance, renovations, closing costs, taxes, inflation, and cost of buying and selling, to help you decide whether renting or buying makes the most sense for you.