The idea of buying a dream house is almost on everyone’s wish list. It gives you more room to customize parts of your space which you probably never got around to doing in your apartment. Maybe you always wanted to have your own garden patch, or and outdoor barbeque area for your weekend get together. It all sounds exciting. However, buying a house is an enormous decision. It has its set of risks. Hence before you embark on this interesting journey of purchasing your house, you should ask yourself a few basic questions so you do not burn your hands later. When you have specific financial goals to achieve, tread carefully and research thoroughly.
Things to Ponder Before You Buy Your House
Allow your heart to decorate the house, but the buying factor should be guided by your intellect. While you may enjoy the idea of home ownership, it should be a practical decision.
For example, if you are someone who travels a lot and there are chances that you might relocate to another part of the region or the world soon, then house hunting is not a good idea.
· If you choose to sell it, there is a commission you have to pay the agent including other expenses that will add-on as per policy and guidelines.
Keeping in mind, such complexities involved in the management of a house, it is generally recommended that you spend a minimum of five years in your house. This time period is a good investment to see a probable property appreciation depending on socio-economic factors. Next, if you plan to buy a house under the mortgage, then it is absolutely essential that you have a steady job and income. Any loan defaulting will reflect in a poor credit score and that will impact your future investment needs.
While it is alright to switch jobs, this may mean that you will have to postpone your decision of buying a house to a later date or until you have enough savings to help you with future payments. Also when you apply for a mortgage loan, the amount of loan sanctioned will also depend on your financial history. So if you have been jumping jobs too much, then there will be a significant amount of questions regarding your ability to pay your mortgage bills on time.
Once you buy a house, you will also have additional expenses such as property tax and insurance costs, where applicable. Also, your financial plan should include expenses towards maintenance and upkeep.