Everyone dreams of owning their own home someday. Whether you want a swanky apartment in a high rise that overlooks the city, or an independent villa surrounded by greenery and enough space to let your dogs romp around, your dream home is one that you’re always working towards. Not sure how to go about that?
Here are some ways you can know for sure whether you are ready to buy a house:
1. Are you out of debt?
As a working professional, you’ve had to study and get specialized degrees in order to get where you are today. Sometimes, that means going abroad or the top tier schools in India, which also means education loans or student loans. More often than not, professionals work throughout their 20s and even sometimes well into their 30s to pay off these loans. So, if you are planning on buying a house, the first thing you need to check is whether or not you are in debt in any way. This could even mean whether or not you’re still paying any EMIs for purchases or premiums on a personal loan you took out. This is because buying a house requires a ton of funds and it’s easier to manage when your funds are not being depleted by other sources as well.
2. Do you have specific plans for the upcoming years?
As a young, married individual, you’ve probably got a few key milestones planned ahead of you. These days, people often have a ballpark figure for the age by when they want to have their first child. If you have such plans and they are coming up sooner rather than later, then perhaps purchasing a house may not be the best idea. This is because being pregnant and having a baby is fairly expensive and if you couple that within the first year of buying a home, you may end up putting undue pressure on yourself and your family. It can be hard to cope with so many monumental changes. However, if the baby plans are still a minimum of a whole year away, then you can still adjust well to all the changes.
3. Is your career blossoming?
As employees, we often know which way the tide is turning. If you are cognizant of your performance and are sure that you are up for a promotion soon, then you can start thinking about buying a house. This is mainly because you’ll have a higher spending power. On the other hand, if you think you may have to slog for a few years before that promotion comes in, or if you received a raise that didn’t quite meet your expectations, maybe it’s better to wait a while and see how things turn out. Making large financial commitments and finding it hard to live up to them can mess with your credit score.
4. Do you have a down payment ready?
Buying a house is not simple. Even if you plan to take out a home loan, you still have to provide a down payment, which usually ranges from 10-15% of the total cost of the house. Even if you are ready in all other aspects, not having these funds means having to wait much longer. A great way to make sure that you do have the funds when you are ready to buy a house is to invest in a policy with high ROI, such as a ULIP. By the time the term period is over, you’ll have grown your funds sufficiently and can look at buying a house.