Confused Whether to Buy a Home or Not? Here is the Solution!

In cities people are quickly diving into home-ownership without appropriate planning. The reason behind this immediate move is nothing but the rising apartment rents. However, there are few who choose to stay in rented apartments and wait for the right time to finally get their own house. Whether to buy a home not? This is the most confusing question, as both rented and owned homes comes with some pros and cons.

There is no right answer for this confusion, only your financial situation plays an important role in taking this decision. But here are few essential questions that you must ask yourself before investing money on any of these options.

How long do you want to stay there?

If you’re planning to buy a home then you must be ready to stay there for seven or more years in order to recoup the cost of buying in the market. Buying a house for short period of time is absolutely not a wise decision and won’t even sell for adequate price so easily. If you’re not ready for long-term stay, it is definitely not the right time to buy a house. You must wait for few more years before taking this big decision.

Are you financially strong to purchase a home?

Your current financial condition is the major factor in deciding whether you must go for house purchase or not. The simplest way to do that is check online home rental costs as well as purchase costs of area of choice. Tally all actual costs with your estimated cost and see whether you can afford it or not. You must be careful to consider how much you want to spend on your housing because other house-related costs also come after the purchase.

If you live in a rental apartment calculated your monthly rental and other expenses. This will give you a vague idea for your average annual expenditure on rental. After that, if you find your savings more than the rental costs including other utility expenses then you may consider buying a home. But don’t forget the first point i.e. for how long you want to stay there.

What are your future plans?

You must carefully think about your career as well as personal goals. Accordingly, you can make a decision where you’ll be living in the coming years. If your present residential city comes in your long term commitment, then you may think about buying a personal home. Considering all financial conditions such as income, assets, debt-to-income ratio, etc., you should start planning to buy a home.

In case your plans are not near any of the aforementioned conditions, then clearly you’re not yet ready to make the big purchase. So, take your time before making any rush.

Even after considering all these essential points, the final word is ‘not to take any decision without thinking.’ This is because buying a home is a major decision and one must not take it lightly.

It would be better to buy a house when mortgage rates are low or if you can manage to take a loan then that could also help you. Renting a house doesn’t need too much analysis or investment, but it also has no ownership. To have proper house ownership, you should be able to afford all payments and other associated costs. So, make your decision wisely after considering all the mentioned points.