Investing in a house is a huge responsibility that everybody is too worried to face. A lot of people are even confused about when should they start to invest in their future house.
So when is the right to invest? And how would you know if you are ready?
If you really don’t have any idea, better read this list to know if you’re truly prepared to have a nice home.
Renting vs. Buying
A factor to consider if now’s the right time to buy a house is whether it makes more economic sense for you to rent or buy a house.
You should calculate the price-to-rent and compare it to home prices in your area if it’s worthy or not.
The real issue about renting is that you’re not really investing something so better think twice if it’s really worthy.
Most of the financial experts recommend that you should keep your housing costs to 30% of your income or less.
But if 30% is too much for you, consider waiting until you have enough income or there’s an option to move in an area with a lower cost of living where your home won’t take such a large percentage of your take-home pay.
Having an emergency fund is important before buying a house. If you don’t have an emergency fund, and you’re not planning to have one it can completely ruin your plan on getting your dream house.
An emergency fund insures against life’s unexpected expense. It can save your financial life and of course the lives of your loved ones.
Moving and Settling
Most of the people who are buying a new house get so excited that they forget the cost of moving. Renting trucks and moving houses can make your back ache and your wallet too.
There is also a possibility that you’ll buy new pieces of furniture that will match your new home that will surely affect your budget.
So when is the right time to buy a house?
Since it’s a long, long process and a lot of investment, it is recommendable to invest at the age of 25 for you to enjoy your own home at your 30s.
And by considering your future plans and your financial situation, you can fully know whether now is the right time for you to buy your dream home.