Homeownership has its upsides. It improves the quality of life, offers unequaled privacy, and promises a sense of fulfillment. Maybe you just want to move out of your parents’ house, want to transfer to a new city or just dead-tired of renting. While property investment is perhaps the best long-term investment for everyone, it still is not as easy as it may seem. You might not even be ready for that life-changing investment.
Here are 6 signs you are not yet ready to buy a house:
You cannot seem to settle down.
You should never buy a house on a whim. If you are certain you cannot stay in a particular city for the next years, you are not ready to buy. You need to be sure about where you will be in a few years. A home is probably the biggest financial investment you will make in your life; it is not like buying a coffee or a piece of cake that you can just leave when you do not like the taste. You should be certain and definitely sold out to your decision. Remember, homeownership is a responsibility that would change your life for good.
You do not make enough money.
Is what you are earning enough – or even more than enough – for you to buy a house without the risk of drowning in debt? Home investment can also greatly impact where your money goes. One of the initial costs you need to consider is the transfer of your belongings, and that might already be costly. More so, as months and years pass, you should be financially prepared for upkeep and repairs. Always count the cost and do not buy a house based on your future income.
You have no savings.
Apparently, owning a property is expensive. Before your purchase, calculate if what you have on your account will still be sufficient to keep you financially stable even after paying the mortgage and your other bills. Have a substantial amount of money saved. You need savings not only for the downpayment. It also serves as your emergency fund. Unexpected expenses could be a major source of stress. Thus, be sure to have a significant savings cushion.
You have too much debt.
Do not set yourself up for more debt. Work on your existing debts; pay them down first. Get your debts under control before entering homeownership. If you struggle to pay your credit card debts, car payments, and bills, you might want to stop and consider if you really want your finances to further suffer.
You do not have a stable employment.
Consider your current employment. Do you still see yourself in the same company in the next few years? What happens if you plan to change your career path? Is the flow of your income stable enough to get you through your monthly mortgage payment and inevitable expenses like maintenance and bills? If you are worried you will lose your job or if your income is not that reliable, you might need to find a new job that will help you buy a home.
You just want to impress.
Let us be real – homeownership is not a walk in the park. Just consider the amount of money and time that you need to spend, and the stress and hassle of the strenuous process, do you really want to do it for a show? Do not buy just because you saw on Facebook that a college friend has already bought his first house. Never invest in a property if you only want to impress. If you are not yet financially and emotionally ready, do not succumb to the pressure.
Determine your capability and commitment before you decide to buy a house. Are you ready to take that step yet and the responsibility it incurs? Are you financially able? Do not be hasty. A home is something that is worth the wait.
Are you ready to buy a house? Why or why not? We want to know what stops you from buying. Share it with us in the comments section.