Buying a home is one of the biggest purchases you will ever make. This makes it a very critical process that should be approached with propriety and caution. You need to be sure and your timing needs to be perfect.
Buying a house can be a rollercoaster of emotions with moments that excite you and make you feel accomplished, and other moments where you will be stressed and worried if you are doing the right thing. Aside from having the right professionals advising you financially and legally, it would really help if you were sure it was the right time for you to make the investment. So how do you know you are ready to buy a house? The following signs may help.
Your Cash flow is Positive
Positive cash flow basically means that your revenue is more than your expenditure. The amount you are bringing in is more than what you are spending on debt and your everyday necessities. You need to calculate your debt-income ratio on your net income
2. You Have Enough Savings for a Deposit
Buying a house isn’t a decision you make today then pay for the house tomorrow. When it occurs to you that you would like to buy and not build, you should have a dedicated savings account that you regularly service. If you have such savings, it is a sign that you are serious about buying a house.
3. You Feel Ready for Commitment
Owning a house has a sense of permanence to it. You will probably have to stay in that neighbourhood for the rest of your life. You don’t get to leave when it gets boring or difficult. Unlike renting where repairs and maintenance is the landlord’s worry, you are now in charge of every repair needed around and in the house. You need to be sure that this is something you can support financially and that you are psychologically ready for it.
4. You Have a Regular Source of Income
Unless you are rich enough to buy a house on cash basis, you will need to pay a monthly premium until the loan is fully serviced. This means that you need a steady source of revenue, if not for anything else, to service this loan.
5. You’re ready for Permanence
You are at a stage in your life where you want to settle down. You may already have a family or are planning on starting one soon, and you have looked around for an ideal neighbourhood. You already have a scrapbook somewhere of what your ideal living room, kitchen, bedroom etc looks like. It is now time to have a home of your own.