The burning question for all young people should be, are you ready for home-ownership? A lot of us reach the stage where we decide we would like to own our own properties. The thing is, it’s not as simple as that. You have to be ready to own your own home and make sure you can afford and deal with everything involved. That's why you need to follow these ideas and use them to help you understand whether or not you are ready to own a home.
Buy or Rent?
One of the earliest decisions you’ll need to make when you want to be a homeowner is to decide between buying and renting. Of course, you’ll want to move out of the rental market, but there are part-buy, part-rent options. Overall, if you can afford it, you need to try to make sure you buy a home outright. This will help you moving forward because it will work out less expensive in the long run. Buying your first home is a big step, but it’s also an exciting one, and you have to focus on making the right choices.
How Are Your Finances?
Assess your financial situation. What's it like? Do you have money saved up, and are you earning a decent pay packet every month? Home ownership is one of the most expensive things you have to deal with, and you need to make sure you are ready to tackle this as much as possible. Bear in mind that you’re going to need to stump up for the deposit and first-time buyer conveyancing fees. Of course, you’ll also have to cover the costs of your mortgage every month and pay for the upkeep and maintenance of the home. That's why it’s so important to ensure that you are financially sound as much as possible. You need to make sure that you have the money to deal with owning a home. Never try to buy a property if you are unable to afford to do so; this is how people slide into debt.
Who Will You Live With?
Think hard about who you might like to live with when you decide you’re going to become a homeowner. There are, of course, a lot of differences living alone than there are living with someone else. Moving in on your own you can choose a smaller place and decorate the way you want to. But, it will cost you more in the long-term. So you need to think hard about the possibility of moving in with your partner as much as possible. This is going to be more cost-effective, but it's also a big undertaking and commitment. It’s probably one step behind having kids together; so you have to ensure it’s the right move for you. That's why you need to make sure you talk about it as a couple and determine if you are ready to get a place together.
What’s the Market Like?
Think about the state of the housing market currently, and consider how this affects you. The advice is always to try and buy when the market is low because there is more of a demand for people to buy homes. If the market is tight, you will be able to get a home for a less expensive cost than what you would normally have to pay. However, if the market is high, it’s probably the wrong time to buy because everything is more expensive. Keep an eye on the housing market and try to plan any movements you make based on what the market is doing. You may want to hire an advisor who can do this for you and keep you informed as to what the market is doing, and when the best time to buy is.
Location, Location, Location
The location of the home is one of the biggest factors and components in the process. In fact, there is nothing that can affect the cost of a property more than where it is located. So, that's why you need to make sure you consider where you want to buy a home and decide if this is right for you. For instance, as a first-time buyer, it’s unlikely you’re going to be able to afford a four bedroom home in Mill Hill! But, you might be able to afford one in Carlisle. London is much more expensive than other parts of the country. If you have your heart set on living somewhere in London then you need to figure out where the optimum location is for your family and your budget.
