As cliche as it sounds, buying and owning a house is one of the most significant decisions you will ever make in your entire life. So, you’ll have to make sure that you’re ready for all the things that come with it–financially, mentally, and emotionally.
You may already be set to buy a house after so many years, but let’s double-check if you’re actually ready! Here are some signs that it’s the right time to buy.
You have a stable source of income
Do you have a stable job? Or an income-generating business? Being financially ready is a must when buying your first home. Remember, this would most likely be a long-term commitment to paying your mortgage so you must make sure that you’ll be able to allocate finances on this until the end of your loan duration.
Aside from mortgage payments, you should also have enough to cover the down payment and other closing costs, renovation, etc. If you think your income streams can cover all of these, then you’re good to go.
You have a low debt-to-income ratio
Generally speaking, when you’re buying a house, you’ll be tied to bank loans or government loans. So, take a look at your current debt-to-income ratio and make sure that you don’t have huge outstanding debts like a big credit card balance or a car loan. These financial responsibilities might strain you in the long run and put you at a disadvantage.
Ideally, your debt each month should not be more than 40% of your income.
You have strong savings
This is another financial metric that you should look into before deciding to buy a house. It is considered good practice to have savings equivalent to at least six months of your monthly payment, but would be best to extend it to a year’s worth of payments so you wouldn’t mess up your finances when unexpected things happen along the way.
If you think your finances are not that strong yet, boost your income streams first to be financially equipped for your home purchase.
You already plan to settle down
If you already see yourself living independently or starting a family of your own, then homeownership is your next step. Buying a home is a big milestone, so you must be in the right attitude about taking on the responsibilities that come with it.
You found the property that feels right for you
In the end, it is the best time to buy when you find the perfect house that fits your budget, lifestyle, and long-term goals. If you checked all the items in your must-haves, and really feel that it’s the best house for yourself or for your future family, then go for it!
Homeownership is a life-changing decision, so it’s best to double-check or even triple-check your readiness for it. Go for it and make your dream come to life when you are sure of what you want and you have the means to pursue it. Best of luck!
References
10 Signs It’s Time To Buy A House. (2021). In Camella. Retrieved from https://www.camella.com.ph/10-signs-its-time-to-buy-a-house/
Anaviso, P. (2022). Planning to Buy a House in the Philippines? 9 Signs You’re Ready. Retrieved from https://www.moneymax.ph/personal-finance/articles/are-you-ready-to-buy-a-house
When is The Right Time to Buy a House. (2019). In myproperty.ph. Retrieved from https://www.myproperty.ph/journal/2019/08/22/when-is-the-right-time-to-buy-a-house/