Buying a new house is a massive life decision. For many, it's the start of a new chapter and the end of an old one. It's as much a financial calculation as it is an emotional moment. Therefore, whether you're buying your new first home or moving places, these six signs will help you decide if it's the right option.
Let's dive in!
1. You're Financially Ready
Of course, being financially secure should be one of the leading signs that it's time to buy a house. Being economically ready means meeting several essential benchmarks, including:
Being debt free: If you're debt-free or close to it, you will have no (or very little) outstanding balance on credit, cards, loans, or any other form of borrowing. As a result, if you're debt-free, you have greater leverage when purchasing a property and can access lower interest rates.
Having money for a deposit: Money for a deposit and repayments means you'll be able to cover your mortgage payments. A higher guarantee means a better deal so if you can hold off to save a bit more, then even better.
In addition, if you have a large amount of savings and/or sell things or downsize your current home, you may have enough money for a sizable deposit. As a result, you can negotiate a better interest rate which will lower your monthly payments.
Specialists advise that 30% of your income should go towards repayments monthly
Having an emergency fund: An additional fund for maintenance emergencies plus HOA costs and taxes further signifies that you're financially prepared to purchase a house.
Finally, a secure career with a steady income can signify that you're financially prepared to purchase a home.
2. You're Sick of Renting
As the adage goes, rent money is dead money. Therefore, it may be time to purchase a home if you're sick of paying off someone else's mortgage, dealing with a problematic landlord, or struggling with restrictive conditions and rising rental rates. Property ownership provides a different level of freedom; ensure you fulfill the financial criteria above!
3. You're Experiencing Major Life Changes
Maybe you've taken your relationship to the next step or are looking to build a future. Or perhaps you've already set plans to introduce a little one into your family. Whatever it may be, significant life changes and future considerations about how property will best accommodate these plans is a major
4. You're In A Buyer's Market
If you've been mulling over buying for a while, the market might decide for you. It may be time to buy if there's a high volume of homes for sale and limited buyers. This is because prices drop in this environment, and you can start building equity at a much lower entry point.
5. The Upkeep Of Your Current Place Is Draining Your Savings
Sometimes the costs of maintaining a home become too burdensome. For example, if you're unhappy in your current residence and are fending off bill after bill for ongoing issues, starting fresh can be cheaper than upgrading your place.
6. You're Due For A Change
If you're after a change of scenery or tired of the environment, it may signify that you're ready to buy and sell where you are currently. Personalizing your space to add a homely feel to your property, then buying is the perfect way to achieve that. Just ensure it's within your budget.
Do You Need To Sell Your Old Place?
Buying a house is a significant step. But, if you're selling your old place to prepare for the big move, home staging can help. Reach out to the team at Creative Home Stagers to learn how we can help attract more buyers willing to pay higher prices for your place today!