At a certain point in life, you will start to think about buying your first piece of property. That’s right, you say goodbye to the rent charges and hello to the mortgage repayments. But at what point should you start to think about making this change? That’s a good question because if you buy at a point when you’re not prepared for the challenges you can end up in a difficult financial situation. And, if you buy too late, you’ll pour a lot of money down the drain renting property.
It’s worth pointing out that contrary to argument owning a piece of property is always an advantage. It’s a great way to invest money and keep it safe. It’s a clever way to build your capital, and it ensures that you always have a place to live which isn’t a guarantee in this world. So, when is the right time to buy.
When You’re Ready To Settle
Moving into a home is a long time-consuming, often expensive process. It will certainly drain your finances. You’ll see when you compare conveyancing quotes that even this legal service that is necessary for any home purchase can end up being quite expensive. So, you need to make sure that it’s the right decision for you and this won’t usually be until you’re around thirty. In your twenties, you’ll still be searching the market, looking for the perfect job for you. You won’t be ready to settle down because the job could be anywhere in the country and getting tied down to one place really could cripple your career.
As such, you should only think about buying property when you find a place that you know you’re going to be happy at for years. And of course, you do want to make sure that you have the wage to cover those mortgage repayments.
Managing The Cost
You must make sure that you can manage the cost of buying a home before you commit to a purchase. If you don’t do this, you can end up in the position where you are struggling to pay for the property even after one year. Don’t forget that mortgage repayments aren’t like rent. They can rise and fall depending on rates of interest, and as such, you could end up paying a lot more than you were when you first bought the home. For this reason, it is worth making sure that you do have enough money in the account to handle the purchase. You should always have a safety cushion of cash that you can fall back on to handle any unforeseen expenses. Particularly, if you’re buying an older home that might require a lot of maintenance.
Starting A Family?
Finally, you should definitely start to think about buying your first home when you start a family. Kids want structure, they need consistency because it is crucial for their social development. So, making sure that you do have a permanent place to live is advised. And it can also help make a house feel like a real home if you own it. They will also benefit on it if you have the documents for transferring your property readily available such as a well-prepared quitclaim deed by the time you decided to pass it on to them. It will lessen the hassle and costs that might occur when unpredictable things happen.
Photo Credit: Hardik Pandya Drew Hays