Is It a Good Time to Buy a House? 9 Signs You're Ready
If you are a first home buyer, you may be apprehensive about stepping foot onto the first rung of the property ladder. After all, buying a property is a major commitment. You may look at your life and ask yourself, “is it a good time to buy a house?” There are always going to be strong arguments for buying a house. When you own a house instead of renting it, you will build equity. Hopefully, the value of the property will rise.
Perhaps most important of all, you will have somewhere that you can call home.
But how do you know when the right time to buy a house is? In this article, we’ll explore the nine signs that you’re ready to buy your first home.
1. You Have Enough Saved for a Downpayment
Before you can buy a home, you will need to be able to put down a deposit. This will need to come from you and cannot be included in your mortgage. Typically, you will need to put down around 10% of the value of the property you are buying.
2. You’re Ready to Settle Down
If you are planning on buying a house, you need to be in a position where you can put down roots, at least for the medium term. Conventional wisdom states that you should be ready to live in your new home for at least five years for your investment to make sense financially.
By living in your home for five years, it will have the time to appreciate, and you can build up enough equity so that your closing costs will be covered when it comes to selling your home. By living in a home for five years, you are essentially ensuring that you will at least break even if you sell up.
Ask yourself some serious questions about your future:
Will you stay at your current job for that long?
If the right position came up, would you want to move?
Does the area that you are looking to buy in have everything you need?
Will you be moving in with your partner, family, or on your own, and will that situation change anytime in the future?
Do you foresee any changes in your living arrangements?
If you can provide a definitive answer to all of these questions, you may be in a position to buy your first home.
3. Your Finances Are Stable
There is no denying that being a homeowner is expensive. Before you can buy your home, you will need to be in a position of financial stability.
There are several factors that you will need to consider. Firstly, you will need to be able to afford the monthly mortgage payments, which are likely to cost you more than your current rent. Next up, you’ll need to think about the closing costs along with any repairs the property may need.
Shop around for mortgages and see how much you’re going to need to pay out each month. Use an online mortgage calculator to help you work out how much of a downpayment you’ll need to make.
Run a credit check on yourself a few months before you intend on buying. By doing this, you’ll be able to see whether there are any issues that need to be ironed out before you apply for your mortgage.
4. You’re Ready for the Responsibility
Owning your home will mean that you will be able to do things like carrying out upgrades on your bathroom or your floors. However, with the ability to renovate comes responsibility. If you are the homeowner, you will be solely responsible for the upkeep of the property.
Buying a new build from a top developer will mean that you shouldn’t have to worry about carrying out any renovations anytime soon. However, you will still need to ensure that all repairs are carried out either by yourself or by the appropriate contractor.
5. You Know How to Do Odd Jobs
While you are responsible for your property, you may find it easier to carry out the maintenance tasks yourself. One of the signs that you are ready for homeownership is if you are able to carry out the basic odd jobs yourself.
This might mean changing sockets or fuses, or it could also mean redecorating.
6. You Know Exactly Where You Want to Live
Do you know where you want to live? Being able to pinpoint exactly where you would like to live will show that you are ready to buy your home instead of renting it. If you are unsure about where you want to live, there is no point rushing.
If, however, you have seen a new development that appeals to you, you may find that you have your heart set on moving in. This is a good sign that the property is for you.
7. You Know What You’re Looking for in a Home
If you have a clear idea of the type of property you would like to live in, this is a good sign that you are ready to buy your first home.
Think about what the dealbreakers may be. What can you not live without in your home? This might include the number of bedrooms, the layout, the size of the kitchen or bathroom, and whether it has a garden.
If you know what you want from a home, then you are ready to start looking for one.
Is It a Good Time to Buy a House?
So, is it a good time to buy a house? If you tick the boxes of the nine signs that you’re ready to buy your first home, then it is time for you to get get some advice and start looking to buy your first home.
At Seri Pajam Development, we provide free consultations on property selections. We can also assist you while you apply for government property buying incentives to help you to finance your dream home.
Contact us today to arrange your free consultation.