There are plenty of milestones that you’re going to hit in your life. Some are thrust upon you, others you will walk to yourself, as in the case of getting married and having kids. Though those two things are rightly important, they’re something that you (usually) know that you want. In the case of buying a property, it’s a little bit more complicated. It’s something that you kind of want, but kind of don’t. After all, it is a big financial commitment and there are certain things you have to give up when you have a home. And let’s be honest, if you really miss your parents that much, you can always look for a home with an in-law suite! Below, we take a look at some of the tried and tested signs that you’re ready to buy your first property. If you tick all the boxes, it might be time to start looking!
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You’ve Got Good Credit
To buy a house is to assume a lot of debt, unless you’re one of those lucky ones who can buy their house outright. Fortunately, it’s a good type of debt, one that’s worthwhile assuming so long as you’re buying a worthy property. However, it won’t be a good debt to take on if you’re already wrestling with large amounts of unhealthy debt. Before you commit to the idea of buying a house, make sure you’ve got the other aspects of your finances in order. A good credit standing will only help in the long-run, too, as it’ll enable you to qualify for better mortgage rates.
You’ve Been Saving Up
While it is possible to buy a home without any down deposit, it’s not a recommended route towards homeownership, and it’s recommended that you spend some time saving up your money before looking at properties. If you’ve been saving for a couple of years and find yourself with a lump sum of cash that you positively don’t need to use for anything else, then you might just have the money you need to get on to the property ladder. If you haven’t been saving, then get to it. You might be in a rush to buy some real estate, but you’ll be well-served by showing a little bit of patience.
You Can Afford the Payments
You already know that you buying a home is a big financial commitment, but what does that mean exactly? It means that each month, you need to have enough money in the bank to pay your mortgage. It’s not quite enough to be able to make the payments; you need to be able to do so comfortably. If you don’t know how much your monthly payments will be, you can use a house loan repayment calculator to figure it out. If you know that you’ll always be able to meet that sum without any complications, then you’re on the right path.
And The Extras
Remember, however, that the mortgage payments only cover the ownership of the property. They’re not going to help you keep the house in tip-top condition. And make no mistake: the costs of running a home can be substantial. Heating and electric can add up quickly depending on where you live, so it may be worth looking for energy efficient homes to help save on those long-term costs. There’s also the matter of emergency repairs and general upkeep. These costs can quickly add up, hence the need to be able to comfortably make the mortgage repayments and still have some left over for a good quality of life.
A Stable Job
It takes time to find out what our purpose in life is. During our twenties, we’re usually hopping from one job to the other, trying different things until we find something that sticks. That’s one of the reasons why it’s difficult to buy properties in your twenties. By the time you’re in your thirties, you’re usually settled in a job and career. If you’re reasonably certain that you’re going to love what you’re doing for next two decades, you know the job will exist (many industries may soon be taken over by robots), and it pays enough to own a house, then that’s a terrific sign.
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No “Grass Is Greener” Syndrome
But let’s forget about your job for a second. What about your city or state? A few years ago, we were planning and move and focused on the state of Utah for a variety of reasons. Clean water, clean air, beautiful landscape and many cities with a lot to do and great schools. If you’re looking at where to live in Utah, you’ll find a lot of great options but you should do your research before committing! If you’re not 100% convinced that you can commit to your area for the foreseeable future, then you shouldn’t buy a home. Investing in a property isn’t just about the walls and roof of the home; you’re also investing in and committing to the surroundings. A moment’s daydream of “wouldn’t it be nice to live over there” is fine, but if you’re itching to get away from your city, then there’s a problem. On the flip side, if you can’t imagine being anywhere else then buy away!
You’re Thinking About Kids
One of the most underrated aspects of childhood development is stability. Kids need it in order to be happy and thriving, or so say the experts. If kids are on the horizon, then you’ll be casting your eye towards a family home. By the time you’re planning to bring little ones into your life, then you’re long away the “getting settled” route. It’s a natural progression to go from married to kids to homeownership, or any order of that sequence.
You’re Tired of Renting
There’ll come the point when you’re simply tired of renting. You want to build a home in your own image, and if your landlord has strict rules about what goes and what doesn’t, then that won’t be able to happen. We also don’t need to remind you that some landlords can be a nightmare to deal with. When you’re a homeowner, you won’t have to deal with their demands and attitude ever again.
It’s a Priority
Our life reflects the things we prioritized in life. If you’ve always dreamed of owning your own home, then it’ll be a priority in your life. If you’re willing to give up certain luxuries so you can afford a place, and you’re willing to commit to the time and energy it takes to make a house a home, then the battle has been won: you should look for a home sooner rather than later.
