The housing market has been wild and unpredictable for the last three years, and many want to buy in but aren’t sure if this is the right decision. Instead of feeling insecure when it’s your time to shine or mistakenly buying a property you can’t afford: these are the three questions to ask yourself before buying a place.
1- How Financially Stable Are You?
Having financial stability is a must. If you don’t even have a stable job, you won’t get past the first couple of steps to buying a house, so it’s vital to consider everything carefully. The best plan is to have had a job with the same company for five or more years, with regular raises, a livable wage, and no risk of job loss. Beyond this, it’s vital that you have two types of savings, one for emergencies and one set aside for your home and downpayment.
Together, all of this will show lenders that you’re more than capable of taking on buying a home and that you can handle the financial burden that will come with it.
2- Are You Expecting Large Life Changes Soon?
Are there any large life changes that might drop into your life within the next ten years? Are you trying to have a child? Is there a chance you’ll have to move out of the state? Are you considering starting back in college?
Large life changes often come with large financial shifts, so take the time to calculate whether you’ll still be able to afford your property after these changes have made their way into your home.
3- Can You Handle the Work of Maintaining and Paying for a Property?
Maintaining and paying for a property can be expensive work. Not only do you need to handle paying for everything from gas to property insurance, but if anything goes wrong on the property, the cost comes out of your wallet. This means having to pay for everything from replacing your water heater to updating your HVAC system or fixing flooding if your dishwasher decides to push water out into your cabinets. This is a lot to take on, and it’s vital that you’re prepared for it.
Why Buying Right Now is the Right Idea
Many may assume they shouldn’t buy a home right now because of how wild the market is: but it’s quickly slowing down. This means if you want to catch a property that someone has invested time into, now’s the time to buy. There’s no way to predict how much property values will grow, but they’ve been climbing for hundreds of years, and there are clear signs they’ll continue to go up: make sure you’ve invested in getting something out of this.
Buying a Home is the American Dream
Whether you’re buying a home to start a family or you’re planning on using it as an investment to build your financial success, it’s important to take the time to ensure you can afford this purchase. Homeownership can be a dream when well decided.