It is a dream that most of us are brought up on: that success means owning your own home with the white picket fence in the suburbs. As we get older however, typically our first experience living out of home isn’t in a new house we’ve purchased, but in a rental property – either by ourselves, with a partner, or with other individual flatmates.
There will come a time however, where you are either presented with an opportunity or you are in a financially stable situation, and you ask yourself: is it the right time to buy a house?
Here are some questions you need to consider that will help you determine whether buying a house is a good option for you.
Do you want to buy a house to be your home?
The first thing to consider is whether you want to buy a house so it can become your own home, or if this will be a rental or investment property.
If you are purchasing it to live in, owning it means you will have the control and freedom to add your own touches, to redecorate – and to repair anything promptly without having to wait on your landlord or real estate agent (always one of the main downsides to renting!).
Buying your own home will mean if needed, you can find other flatmates who can pay you rent to help pay off the mortgage, and will provide a form of financial security for you and your family. Be sure to use Property valuation software so that you can determine whether the home you are buying now really will pay off in the future.
Do you want to buy a house as an investment?
Perhaps you don’t wish to live in this house yourself, but see it more as an opportunity to get into the property market. Owning real estate can be a lucrative and inspiring way to save and make money: provided you have the dedication to learn and the patience to wait for the right opportunities.
Thinking about who you want your potential tenants to be – students, travelers, families – will determine where you look and what type of house you search for. Real estate development software and courses will help you learn how to spot a great investment.
Do you plan to move any time soon?
Buying a house – whether it is for you to call home or for investment purposes – is a significant long-term commitment. If you cannot see yourself being close to the area in where you have bought the home, or if you will be unable to visit frequently, then perhaps it is not the right time in your life to buy.
You need to be able to keep an eye on your property, or have someone you can trust to do this job for you. If you take the proper precautions now, you will not be one of those many horror stories where owners return from years overseas, only to find their tenants have destroyed their property.
Do you want to renovate, fix up, or change nothing at all?
Your budget will likely greatly influence your answer to this question. If you cannot afford to buy the dream house in its full glory, renovating or “fixing up” a property can be a tempting option.
If you decide to go down this route, then you are in for a fun, creative – but also lengthy process.
Please make sure you have worked out a budget for all the changes and renovations needed before you close the sale. You might discover it is worthwhile waiting another few years if the budget works out to be significantly more than you initially expected.