Can you really afford your dream house? Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA)in the U.S, depending on the consumer's current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments. However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses. Utilities: The most obvious of additional housing expenses are utilities--gas, electricity and water. But don't forget about telephone, trash collection, and cable or satellite bills. Taxes: As a property owner, you are responsible for property taxes. The rate will vary from city to city. In our community, the tax rate is 1.045711 per cent. That means for a home with a market value of $200,000, yearly taxes will run $2,091.42. To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year's tax assessment. Your real estate professional can help you refine these figures. Association Dues: Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some residential developments/subdivisions/neighborhoods have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget. Maintenance: You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances. Insurance: Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars. And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance. Remodeling/Upgrades: Unless the home you purchase is picture perfect, you'll more than likely be adding your personal touch. Therefore, you to need add to your housing budget the costs for remodeling and upgrades. Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up. Bill Schiavone and Steve Diamond can be reached at 905-3386550. Prudential Town Centre Realty Inc., Brokerage is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. 19 · Tuesday, December 29, 2009 OAKVILLE BEAVER · www.oakvillebeaver.com BILL SCHIAVONE & STEVE DIAMOND Real Estate Talk EX U CL SI VE EX U CL SI VE OLD OAKVILLE CHARMER! Gorgeous 4 bedroom, 2.5 baths family home Located in desirable Old Oakville with stunning backyard oasis with outdoor kitchen, pool, hot tub and cabana. Must be seen to be truly appreciated.. $1,790,000 123 SELGROVE CRESCENT Custom Built Executive Home in desirable South West Oakville steps to Coronation Park & lake. Gourmet kitchen, professionally finished lower Level with gas fireplace. Curb appeal 10+ $1,599,900 JOSHUA CREEK Absolute Show Piece by Sundial Homes. Ideal Joshua Creek location. Over 150k in upgrades & a further 50k in landscaping. Premium 59ft x 127ft lot backing lush ravine. Stunning gourmet kitchen. 278 RIVER OAKS BLVD EAST Upscale custom built home in distinctive pocket of family friendly River Oaks. Approximately 3,200sq.ft on premium 59ft x 125ft south exposed lot. Dark cherry stained hardwoods, open concept layout, generous room sizes. Gourmet style kitchen with triple door walk-out to two tiered deck. Must be seen to be truly appreciated. $699,900 1298 KELLY ROAD Raised bungalow in great neighbourhood! Huge fenced lot, strip hardwood flooring, stainless steel appliances, finished basement. Must be seen to be truly appreciated. $419,000 L SO D L SO D "...Christmas wish come true early!" 5-2410 WOODWARD AVENUE Thank you Stacy for making our Christmas wish come true early! It has been a pleasure working with you. Thank you! Terry & Beth Jiggins 4687 KURTZ ROAD Brand new 3 bdrm semi detached located in Alton Community. Open concept great room, gourmet style kitchen & large master retreat. Curb appeal 10+ $362,900 116 MAPLE GROVE Completely renewed Williamsburg style home located in desirable South East Oakville, walking distance to lake. Stunning magazine level 260ft western exposed park like lot. $1,999,000 Upscale 3 bedroom townhome, walking distance to GO transit, amenities & Lake Ontario. Ideal for first time buyers or empty nesters. Also available for rent. $369,000 Dan Cooper Broker Office: 905.338.3737 Direct: 905.849.3303