An article recently written by THE GLOBE AND MAIL highlighted perils of buying a home without having a ‘rainy-day fund’. At Aegis Building Inspections we believe that this is a very important topic that all home buyer need to take the time to think about before they purchase a home.
The article starts by saying that a lot of people buy their home without access to any emergency funds. When you are in this situation and get a mortgage without having any savings it puts you in a situation where the unforeseen is your enemy. There are many things like losing your job, home repairs and expenses, divorce or medical problems that can come out of nowhere. No one expects any of these misfortunes to happen but it pays to be prepared to have at least three months worth of living expenses set aside.
This seems like an obvious strategy to have in place but the fact is that not many people heed this advice. A recent survey on contingency funds found that up to 40 per cent of people had no emergency savings.
For these homeowners that have no savings or borrowing power having unexpected expenses of $5 000 to $10 000 can easily put them at risk of missing a mortgage payment.
They go on to say that if your finances do need some reinforcing, don’t worry about being stuck on the real estate sidelines for a while longer while you accumulate cash.
If you are going ahead with the purchase of a property and would like to greatly reduce the risk of unexpected repair costs you should have a pre-purchase building inspection and timber pest inspection carried out by Aegis Building Inspections. We are the experts at inspecting homes and discovering any faults or defects the property may have. Call (07) 3103 3399 to book your building inspection and pest inspection. We also carry out pool safety inspections.