Don’t Feel Pressured To Buy: Beginners’ Guide To Buying A House
When thinking over the things to consider when buying a house, the process can become increasingly overwhelming. For first-time homebuyers, there are a lot of things to consider when buying a home. According to research in 2015, experts predicted that mortgage rates would surpass 5%, yet interest rates remained 4%. On the brighter side, low interest rates have encouraged many potential buyers to actively participate in the housing market. The funny thing is, most people decided to move from renting to buying a house for the first time out of fear of future rate increases. Yes, it is not inconsequential. Interest rates are just one of the factors to consider when buying a house.
All of us are looking for a job to provide for our needs and wants. We are all aiming to earn money and reach our goals in life. One of these goals is to have our own house for ourselves and our family. Some of us think that we must have to be successful in our jobs to buy a house. The construction of a house indeed costs a lot of money. In this case, we think that we have to wait for our job success to have it. But is it necessary to wait for our job success before buying a house?
Time flies so fast, especially when we are busy achieving our dreams. One day, we’ll realize that we are almost done with our monthly responsibility, and the keys to our dream house are finally in our hands. Just focus on your goal and never give up. It can be challenging, but it’s worth it.
What To Consider Before Buying A House
Whether you are buying a house for the first time or a seasoned investor, here are some of the most important things you should ask yourself to determine if it is the right time to do so.
-Length of stay
-Local market indicators
-Supply and demand
- Length of Stay. When buying a house for the first time, many people often overlook the length of time you plan to spend in the house. Ask yourself: “Does the length of stay make it more economical to purchase than rent?” Of course, you cannot expect a specific answer to such a generic question. Bear in mind that each market is different. Therefore, it will require a thorough analysis to determine if buying is the right choice. The truth is, it will take you four to seven years to break even on a home–where it can payback for the cost of transaction and ownership. After that, you can possibly tell whether or not the time you plan to spend in the house is worth its purchase.
- Job Security. Secured job is the battle cry of today’s generation–employer’s sentiment. Perhaps, there is nothing worse than buying your first home, only to discover that you are unemployed shortly after. Question: Does job security weigh on the mind of those who are fortunate enough to be employed. Considering that such uncertainty may ruin any prospects of buying a home, make sure that your employment position is secured before signing to a 30-year commitment to mortgage premiums.
- Downpayment. It is undeniable that downpayment is still one of the biggest obstacles in the way of potential buyers. Younger generations, per se, are having a hard time saving up a lump sum of money. Worst case scenario, most of them are saddled with student loans. Indeed, it is utterly impossible to save enough money for a downpayment.
- Local market indicators. When buying a house, you have to remember that you have no control over the local market. The worst thing, you may not even be given any options. While you are excited to buy your first home, the real estate market cannot always offer homes in your price range or the preferred location. If you get luckier, some market values can help you decide whether or not owning is even a viable option. On top of that, it all depends on the current state of the local market you are interested in.
- Emotional State. Your emotional status is at risk, especially when buying your first home. Why is that? From here, you can conclude that homeownership is not for everyone. You all know that buying a home is a huge commitment that not everyone is ready to sign up for. Perhaps, you still wish to travel the world or achieve your dream career. Just like owning a pet, buying a house comes with additional responsibilities–responsibilities that not everyone is willing to deal with. Lastly, when a pipe is broken, it’s your responsibility to fix them, not the landlord’s.
- Supply and Demand. Since the prices of real estate properties have been appreciating, many homebuyers are having difficulty buying a home within their budget reach. For the same reason, even current homeowners are getting excited to purchase newer, bigger, and better homes (to trade). The increase of both rent and home prices mixed with stagnant wages for many leads to the combination of high demand and low supply. While this may make it harder for first-time home buyers, investors who own passive-income properties should benefit from the market’s current state.
Don’t Feel Pressured To Buy Your First Home.
Come to think of it. During careful consideration of things, not buying at all should cross your mind. Yes, many people around you are planning to buy their first or third house. No rule says you must purchase a house by a certain age. Let us reiterate, buying your first home is one of the most significant decisions you will ever make. Yes, some see it as a beneficial investment, it may not be for you. Try to consider all your options before purchasing a house–not only real estate market statistics but also your personal goals.