The decision to purchase a home, whether you’re a first time buyer, or have been on the property ladder a while, is an exciting one, but it’s not without its challenges and questions.
This short guide is intended to help you reach the right decision based on where you currently are in your life.
Once you’ve taken these things into consideration, then you’ll hopefully feel better prepared to make a decision as to whether or not buying a property is the best move for you at this point, or if you should hold off for a while.
Understand the market:
You don’t need to be a big shot investor or property developer to understand the trends surrounding the property market where you’re living right now. For example, and easy way to determine if now is a good time to buy or remain renting for a while is to simply look around at properties listed for sale, for rent, and that have sold. If a lot of properties are remaining on the market for a long time, then now may not be the best time to buy if you’re planning to sell in again in the near future. Although you may grab a good deal if the current buyer is looking for a quick sale, property markets tend not to change too quickly, so it’s maybe best to hold off for a few years until things level out again.
Know your numbers:
Buying a home is obviously a large purchase that requires some careful planning when it comes to the financial side of things. So, before you jump in and get excited about all the possible options you have when looking for your dream home, then you really need to get serious, crunch your numbers, and set a manageable budget. If you’re buying the place alone, then consider how much of a monthly mortgage repayment and other costs you can realistically afford, and how much you’re willing to spend. Also look at where you may be willing to cut back and make compromises. If you’re buying a place with someone, then the same applies, but you both need to have a conversation and be honest about your finances.
The real cost:
Buying and running a home can be an expensive thing. Unlike with renting, you’re responsible for every cost that comes with the running of the house – not just the mortgage repayments. Things like any major work that needs done, structural upgrades, external changes, home improvements and even things like ensuring the correct plumbing and heating installation systems are in place will all fall to you, so you have to take these things into consideration when planning for a house purchase to make sure you can actually afford the responsibility and decide whether it’s best to rent or buy.
Many people are under the impression that paying their mortgage off each month means that they’re closer to having their house completely paid off so they can own it outright, but unfortunately those people only discover after buying a house, that the monthly payments they’re making are going largely towards the interest on the mortgage, and very little towards the house repayments themselves. It usually takes a few years of monthly payments before the mortgage actually starts to be affected by the repayments and then it will start going down.