Are you a buyer or a renter? There comes a point in every renter’s life when they weigh up their housing options and after a point of time, everyone might consider buying a place of their own. If you’re on the fence about the whole process, there are a few points that you should run through before making a concrete decision. Stepping onto the property ladder for the first time is no small matter and before you make a leap for it, ask yourself what you really want. It’s all about your happiness, after all.
- How Long Do You Want To Live There?
The biggest difference between buying and renting is the ease with which you can up sticks and leave. While renting might make it easier to go wherever the wind takes you, buying can hold you a little more firmly to the ground, rooting you to a specific place. Before you make the plunge, ask yourself how long you want to live in your current hometown and where you would like to be in 5 years time. If you see yourself settling into a career and lifestyle where you already live, buying could be a very sensible option. Don’t just think about the here and now; try to look forwards.
- Would You Mind Staying On Longer?
One of the ideas that comes with buying a place is selling it on at some point in the future. If you’re lucky enough, your home can build in value over the years, leaving you with a healthy profit by the end of it all. What, though, if it’s not the case? Anything can happen in the property market and if things don’t go as you had hoped, you might be forced to stay on in your home for even longer. Ask yourself if you would mind living in a place indefinitely. Your plans might not always come through, so you have to prepare yourself for a potentially longer stay than you had at first imagined.
- Do You Have A Down Payment?
So you’ve decided to buy! Next comes the money. While being emotionally ready to start a life in a new place is important, you have to have the finances in order to back it up. Many loans can be offered with less than 20% down beforehand but there are equal numbers that simply won’t. To cover your back, try going into the whole process with at least 20% of the asking price already in hand. Having enough savings will improve your chances of buying and make getting the home you really want all the more easy.
- Can You Make Any Repairs?
The home of your dreams isn’t always the home you can afford and every house comes with a little repair and maintenance work. While your landlord takes care of these things when you’re a renter, it is up to you to repair any damages when your name is on the contract. Keeping a certain buffer in your savings can help to cover any breakages that might come along the way, so don’t forget to be prepared. If you’re not sure how much to put away, roughly 1-4% of your house cost per year should cover it. Covering your back will only make any sudden surprises easier to deal with.