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PAGE 22, WEDNESDAY, JULY 30, 1980, WHITBY FREE PRESS J ULY SPECIAL CONSUMER BEAT Buying a house (Part 1) Entèring the world of house-buying is like plung- ing înto a foreign land for mnost first-time buyers. There is a wliole ewW lan- guage to master. You deal with Iawyers and brokers, builders and bankers. If you're unprepared you're likely to becoine Iost and the resuit could be unexpec- ted financial loss and erno- tional frustration. The first question you should ask yoursclf when you have decided to shop around is: "What can 1 af- ford to pay?!' Over the years, mortgage lenders have developed a few rules-of-thumb to help you decide how much you can afford. Here are three: 0 The selling price should be no more than three and one-half times your annual net (after taxes) income. If you are -buying the house with another person who makes a stable income add both salaries to make the calculation; a The experts also say your mon thly mortgage payments and one-twelfth of your an- nual municipal tax should be no more than 30 per cent of your inonthly gross (be- fore taxes) salary. For ex- ample, if you earn $1,500 a month, your mortgage payments plus taxes should be $450 a month or less. f you earn $2,000, payments should be no more than $600. e Lastly, your mortgage payments plus other debts should not total more than 40 per cent of your monthly gross inconie. Now that you've decided what you can afford, the next step is to decide where you would like to live. That should encompass a variety of considerations. The most convenient neighborhood is one that is close to public transporta- tion, schools, churches and shopping. It is also helpful if it is close to your work, unless you enjoy daily com- muting. It is equally important tc find out whether municipa. services - like garbage pick. up and police patrols - arc regular and efficient. Some one who lives in the neigh borhood can be a good source of such information. A wise precaution for all homeowners is to find out whether the municipal zoning in the area is compa- tible with the kind of neigh- borhood you want to live in. It is possible that the lovely sunshine streaming into the kitchen window could be blocked by a 20-storey high- rise in the future if the zoning allowed for it. Cal the local municipal offices to get this information. the day and the night to sec if you feel conifortable at both tumes. This is the first of a five- part series excerpted fromn the Ontario Ministry of Con- sumer and- Commercial Re- lations booklet So you want to buy a house! To obtain a free copy of the booklet write: Consumer Information Centre, Ontario Ministry of Consumer and Commercial Relations, 555 Yonge St., Toronto M7A 2H6. Telephone (416) 963- 1111. Collect calîs accepted. It is also a good idea.to Support your local visit the neigh borhood during Lung Association 723-3151 cO'uv ýnE3T ALL-PRO REALTY LTD. WOOD LOTS Maple, beach, and oak woods wlth scentlc view, excellent for camping, and recreation, close to Rice Lake, one hour east of Whltby Just off Hlghway 45. Prlced only $1 ,900. Cali James Houston 855-2416 or 372-5579. 102 Walton Street P.O. Box 550 Port Hope, Ontarlo.