Buying a house isn’t like giving in to your impulse to purchase the latest designer shoes, no matter how costly a pair may be. A house is a much more serious acquisition, not to mention a vastly more expensive one. You can’t just throw it aside when it doesn’t suit you anymore, and you can’t easily rid yourself of it by selling just like you would any other smaller possession. Therefore, the decision of whether you should buy a house (or not) should only be made after much thought has been put into it. So how do you know if you are ready to make the huge leap and make that big purchase? Here are some of the things you should consider before buying a house:
Do You Want to be Tied Down to a Mortgage?
Unless you’re swimming in hundreds of thousands of dollars, you will most probably need to get a loan to purchase your very own home. Sticking to the agreement and paying the gigantic amount you owe require a strong commitment as well as a stable source of income. Before you tie yourself down to a mortgage, think about whether it is truly what you want.
You should also mull over whether you’ll be staying in that particular place for a long time. You might be planning to relocate in the near future for personal or professional reasons, or you might be the type to quickly get tired of living in a certain place all the time. Owning a house in such cases might not be a great idea, or at the very least, not yet.
Are You Planning to Have a Family Soon?
Another thing to think about is whether you’ll be having or planning to have a family soon. If your answer is in the affirmative, then that should also be taken into account when acquiring a house. What type of house will you, your partner, and your children need? How much space will be required to comfortably house the entire family? Is the location of the house suitable for everyone? Are there great schools nearby? Is the neighborhood a good place to rear the children? These are just some of the questions that need to be deliberated before you sign a deal and buy any house.
Are the Current Rates and Market Favorable for Buying a House?
Since purchasing a house is a huge investment, you need to ensure that you’re going to make a wise one. Do your homework, and research on the current rates and market. Ask yourself, basing on the data you’ve gathered, whether it will be wiser to buy a house at this moment or continue renting. There might be times when the rates and market aren’t favorable enough to warrant owning a house, and there might be times when the benefits of buying one outweigh the advantages of renting. Don’t rush into things; wait for the right and most opportune moment. In 2012, the rates are extremely favorable for buying a house. For those with great credit, you can get mortgages with rates as low as 3.125%.
Are You Ready to Take on the Burden of Having Your Own House?
Owning a house entails a lot of responsibilities that you never even thought about before. For starters, you will have to pay off your housing loans. That alone is already a hefty burden, particularly on your finances. Apart from allocating your cash inflow to these payments, you will also have to spend money, time, and effort into maintaining your property and making various repairs. In the past, when things got broken and needed fixing, all you had to do was contact your landlord to get the job done. When you own a house, you’ll be solely responsible for making sure everything is in working order.
There are several things that you need to consider before you go out and buy a new house. Unlike an ill-fitting outfit that you bought off the rack, you can’t just return it if you find out later on that it wasn’t a great purchase. So take your time, study the current market, consider all the possible scenarios, and think about the numerous obligations that come with owning a house.