Published : 28 January 2015
The decision to stop renting and to buy your own one is a major one. This is why so many individuals feel reluctant about it. Are you plagued by uncertainty? Wondering whether you should postpone home buying for one or two more years? There are certain ways in which you can determine whether the time has come to buy your own place.
You need to have financial and lifestyle maturity in order to move from renting to owning property. Understanding the risks of buying a house will also help for smart decision making and the selection of the right home.
So, are you ready to quit renting and buy your own place? Here’s how you can find out.
You do Understand All Aspects of Home Ownership
You’re ready to buy your own place if you understand all the aspects and implications of home ownership. Buying the house is just the first step. You’ll also have to familiarise yourself with various other essentials.
There will be maintenance costs and repairs. There will also be taxes. Utility bills for a larger home may add up to a bigger sum than the one you were previously used to. If you’re certain in your current financial status and you understand these challenges, you’re ready to move on and find the house of your dreams.
The Rental is Far from the Cheapest Option
Though it may seem affordable right now, rental is certainly not the most affordable option when it comes to having your own place. Doing the math will show you that home ownership is often much more financially attractive in the long run.
Many cities that are popular among renters can have incredibly expensive property. These places turn home ownership in a more financially-savvy option. Instead of living in a shoebox and paying a significant amount, you can save that money and make contributions towards your mortgage.
Sit down and do the math – how much are you paying in rent each year? How long have you been renting? Getting the figure will put the situation in perspective and help you decide whether you should continue renting or consider buying your own house right now.
You Enjoy Professional Stability
This is probably one of the most important factors you’ll need to consider in advance.
Buying your home will make sense when you’re certain in your professional and financial stability. Have you just been promoted or asked to become a team manager? Chances are that your workplace performance is stable enough. If you’re confident that you’ll continue earning the same or even more in the years to come, you should consider buying a house.
Home buying is a long-term endeavour. You can’t base the decision on your current status without thinking about the future. People that have been experiencing an upward professional trend are the ones that can be confident and secure enough to make this major investment.
You have Solid Plans for the Future
You should also think about your personal life before buying a house. Are you in a solid relationship? Do you consider having kids in the near future? If so, you’ll need to buy a bigger house.
This is another long-term consideration. You may be single and in need of a relatively small place right now but where do you see yourself in five years? Do you have any clarity about the future?
Anyone who is yet to make these major decisions may want to postpone the purchase. Alternatively, the purchase of a smaller home that will be sold in the years to come can be considered as a good option. You don’t have to wait for marriage and kids before purchasing a place, if you have the financial stability and the desire to buy residential property.
You Plan to Settle in the Area
Most professionals in the world of real estate say that house buying makes sense if you plan to remain for more than five years in the same area.
Are you the type that likes to move around, explore different cities and professional opportunities? Renting will make more sense for you because it will give you the freedom and the flexibility that will correspond to your lifestyle.
Buying a house will be a good idea once you decide to settle. The costs of selling a home every now and then can add up to a substantial amount. This is why you should probably wait until you’re absolutely certain in your desire to settle down in a particular place.
Becoming a property owner comes with many perks but it also may put you under financial and organisational stress. Give this idea some time and think it through. You will be investing in something major, something that you haven’t owned until now. Ask yourself all of the important questions to make sure that you’re ready for this major step.