While buying your first property is a major milestone in your life, it is also a big financial decision. But how do you really know if you are already primed to buy a property of your own? You surely will not want to dive into something that you probably will regret later on or you are not ready for. You might want to consider these some factors to help you assess your readiness to purchase your first property.
Your Financial Stability
Your financial status is obviously the first and most important thing you have to consider, especially if you are pondering on getting a loan. You must have substantial cash ready for the down payment plus other upfront costs. Assuming you have saved enough to cover these, you should also allot some funds for emergency expenses. Remember also that property ownership means having to pay for taxes and other maintenance costs.
To be able to qualify for a loan for your property purchase, banks and lending institutions will want to look into a stable source of income which may come from either a business or employment. Your monthly income will not be the only basis for loan approval because the stability of this source of your income will also be factored in. In other words, lenders will assess whether you can pay the mortgage even for the next succeeding 10 years or more.
Your Reason for Buying
Having a lot of money may not be enough a reason to buy a property. You should also ask yourself why and align your decision to certain goals you want to achieve. Some of these goals maybe your plans of settling down and starting a family in the near future, or using the property as an investment that will generate additional income for you. Whatever your reasons are, it should not be a spur of the moment thing affected by pressure from others, or just because everyone in your circle is getting into a buying spree. Remember that while owning a property can give you a sense of pride and fulfillment, it will also mean certain responsibilities.
Your Ability to Manage the Property
Your property will only be a good investment if you are able to manage it well. With your purchase come repairs, maintenance, and upkeep. Especially if you acquired your property through a loan that you have to pay for regularly, it should be put to good use immediately. Do not fall into the trap of buying a cheap property, and then not knowing what to use it for or not being able to use it because you do not have enough money for renovation.
Are you a busy jet-setter executive who seldom settles down in one place? Or, are you currently renting a home and wants to take control over your own space? Obviously between these two types, the busy executive may not have a need to purchase a property at the moment, while the other type may be ready to settle in the place for the next years. Take into account the kind of lifestyle you live when you purchase your home because it will affect your ability to take responsibility for your purchase.
Your Other Obligations
As a home mortgage can take out a big chunk from your income, you should manage your present credit records and determine how much you pay for other debts—car loan, credit cards, and others. You will not want to end up overwhelmed with bills or worse, be unable to pay a mountain of debt.
Your Understanding of Property Sector
Getting to know the trends and developments in the real estate industry will be beneficial to you in making an intelligent purchase. While you may have a real estate agent who can assist you, taking some time to study the market will give you better insights on which property to buy.
Property portal Lamudi offers help through its Lamudi Housing Fairs which are regularly conducted in different venues and schedules. The most recent schedule will be this September 21, 2019, which will be happening in Cebu Trade Hall in Cebu City. Interesting activities for property seekers are lined up for the event– home buying seminars, property discounts and foreclosure property auctions.
Aside from getting tips for the home-buying process, you will find a wide array of properties to choose from. Freebies and discounts not offered anywhere else will also be an incentive for on-the-spot buyers. The event will be supported by reputable real estate developers and government agencies like the PAG-IBIG Fund.
Remember that you are about to make a lifetime major investment, and nothing can best prepare you for this bold step than being well-informed about the process and having your own honest self-assessment about your readiness to buy a property.