Are you in the phase of your life right now where you’re seriously considering buying and moving (or building) your first home? Renting can be just as fine and can come along with its own perks and upsides, however, purchasing a house is a good investment that you’ll be glad to have made the move in the long run.
If the idea of being a homeowner is stuck in your head for quite a while, why don’t you deliberate your thoughts on it? You’ve dreamt of having your own home someday, maybe that time is now. If you think you’re ready to enter the real estate market, here are some tell-tale signs you’re ready to take the leap:
You want to settle down
You’ve got a stable job that compensates you very well, you see yourself working for that company for many years to come, you’ve rid yourself of debt—to put it simply, you’re ready to settle down and take this leap in your life.
Purchasing a house is a big investment and one that you definitely need to prepare for before jumping in. If in about 5 to 10 years you see yourself living independently, about to start a family or a new chapter of your life; or move forward with your career, investing in a home is possibly the best decision you’ll make.
You have a stable job
Of course, before you invest in a house you’d need to have a stable income. If you finally find yourself living comfortably with a secure job that compensates you more than enough that allows you to invest in a house, go for it.
But before you do, ensure that your job is stable and for the long-run. You don’t want to tie yourself in a mortgage loan that will be a burden when you’re suddenly out of work, do you?
You’ve repaid your debts
If you currently have a spoonful of debt and took out loans from various lenders you’re working on repaying at the moment, it would be better to put your house hunting on hold and deal with your pending debts first before you take out a big mortgage loan for your house.
Think about it: it’s easier to focus on one (or a few) payments rather than be by troubled by multiple debts and loans at once. Make focusing on paying for your home easier by getting rid of all your pending debt.
You’re in good financial shape and have a budget system
Financial security is highly important before making the big decision and taking the leap in property investment. With financial security comes smart budgeting system that covers your monthly allocations and in maintaining a healthy spending and saving habit. As mentioned earlier, it’s better to focus on paying for your home rather than with five or more other debt otherwise, you’ll only bury yourself in a lot of debt.
You’ve assessed the Pros and Cons of Renting vs Owning
Chances are you’re currently renting. There’s no harm and bad in that but if you think it’s time that you move onto owning a house and the time is right: stable job, financial security, and the works, home owning can be the best option for you. This, of course, after you’ve weighed in the advantages and disadvantages of renting and owning.
You are committed
And finally, you’re 100% committed to repaying your pending debts, setting monthly financial allocations and covering for your expenses as well as for emergency ones, continuing payment for your insurance, savings, mortgage, and utility bills that comes with your new home investment. You should know that you’d need a lot and intensive financial preparation and commitment beforehand.