When Is The Right Time To Buy A Home?
You might think that it’s always the right time to buy a home. If that’s the case, then you have almost certainly heard about the issue of dead money. The basic concept is simple: if you’re renting there’s no long term benefit. You’re giving your money to someone else without getting much that you benefit from in return. Eventually, you’ll move again and pay another massive cost and it can be an ugly cycle. However, there are a few questions that you need to consider before you invest in your own property.
Do You Have The Right Job?
If you are going to invest in a piece of property, then you need to make sure that you have a stable job that provides a regular level of income. If you don’t, then you could end up in trouble further down the road. There’s no quick way out once you purchase a property, so if your income takes a nosedive then you could end up losing a lot of money. Now, you can lose money when you’re renting too; point is, consider what to do if your income takes a hit.
Is It The Right Time?
You should also consider whether it is the right time to buy a property. You need to think about the state of the economy, both local and national. You should also look at house prices and try to ascertain whether they are high or low. If the prices are high then this can be a problem when it’s time to sell. You could ultimately end up with a shortfall and that’s the last thing that you want.
Right now of course, COVID-19 has maybe made saving for a deposit a little more difficult for many, though perhaps not impossible depending on your personal situation. If you want to save then you will need to think about reducing your spending in other areas.
It is also wise to consider affordability when deciding whether it is a good time to buy a home. How much you can afford to spend on a property is likely to impact how you proceed, or don’t. Use a mortgage affordability calculator to help you figure this out.
Are You Ready To Settle?
Last but not least, you need to think about whether you are ready to settle in one place. If you could still be interested in travelling then you might wish to consider this – although renting out your own home to go travelling is possible of course. But you might not have even decided what country you want to live in just yet. Buying a house won’t cement you in one place forever, but it does make moving around a lot more complicated. This is also something to consider if you are hoping to find more job opportunities on the market and potentially advance your career in different areas.
Summary – Is It The Right Time To Buy A Home?
I hope this helps you understand some of the key considerations you need to keep in mind before you decide whether it is the right time to buy a home.
*This is a collaborative post