People who move house often come up with a budget to start with, however, and then find later on down the line that they cannot stick to that budget for the property that they are dreaming of. This can raise something of a dilemma, as it raises the question of “can I actually afford to buy this property”? Unfortunately, the answer to this question is not universal and will depend on you and your personal situation; however, we have compiled a short guide to make sure that you don’t have to worry about how going over budget will impact on you.

Going Over Budget: Can You Afford to?

Now, the point of a budget is to make sure that we don’t end up overspending, but in some cases, the budget may need to be stretched in order to get everything that we want from our new house. Perhaps the house you have found is literally exactly what you’ve dreamed of, but is just a few thousand more than your budget allows; should you go for this chance or not?

That is hard to say. The first factor that you should most certainly consider is your financial position. If your budget has already been made as a very worst case scenario amount, don’t allow yourself to go a single penny over; this may mean the difference between you paying your monthly bills and going hungry! However, if you do have a slightly more generous rainy day fund stashed away that you could dip into, going over budget may be an option.

Alternatively, think about the amount of work that the property will need done to make it a home. If the house is ready to live in already, maybe you could afford to use the funds in your bank for purchasing the property outright, instead of redecorating once you have moved in?

In Summary

Going over our budget isn’t something that many people are overly comfortable with doing, and this shouldn’t come as much of a surprise either. As a species, we have evolved thanks to our ability to plan and think ahead; however, being faced with the prospect of going over budget can put all of these natural evolutionary skills into question, and can leave us feeling uncertain and concerned. Therefore, it is essential that you know how to decide whether or not you can afford to go over budget before you decide to do so—and our team of professional discount real estate brokers can help you get the most for your money!