In our culture, homeownership is regarded as a significant indicator of wealth and prosperity. For most people, this symbolises success and stability. In recent years, however, this has become harder to achieve for many as the cost of living continues to outpace wage growth. This goes on to the all-important question: are you ready to buy a house?
The correct answer to this depends on a variety of factors, including your current financial situation and the market conditions in your area.
Here are five signs that Graana.com, Pakistan’s 1st Online Real Estate Marketplace, has outlined to let you know when you are ready to buy a house:
Sign #1: You have enough money set aside for a down payment.
When it comes to buying your own house, one obvious indicator that you are ready is if you have saved enough money. To buy a house, you need some cash in hand to pay in advance � this is what we call a down payment.
For example, a lot of houses for sale in Islamabad are available in the market that you can get by paying a down payment.
Additional closing costs, such as realtor fees, title-related fees, and house inspection fees, should also be factored into your budget.
Sign #2: You have done your research.
Like most people, you have probably spent years researching before making a big purchase. Buying a house is no different.
Make sure you have researched the market, neighbourhoods, and types of homes available. You should know what you can afford and what you want. You should also weigh the pros and cons of buying a home at this time, and are confident that it is the right decision.
Sign #3: You have worked at your current job position for at least two years.
If you are considering purchasing a house, you need to make sure that your current job is stable.
Also, to qualify for a mortgage in Pakistan, you must have a job experience of at least two years. Most lenders also prefer that you have worked in the same sector for at least two years.
Sign #4: You spend less than you earn monthly.
According to CNBC, housing expenses should ideally account for no more than 30% of your monthly gross income as a general guideline.
Logically speaking, if you do not have a positive net monthly income, you can�t be expected to afford living in the said property.
Sign #5: You do not want to spend any more money on rent.
One of the biggest disadvantages of renting a home is that you are squandering your money on monthly rental payments, which may overall be more expensive in the long run than purchasing your own property.
Unlike rental payments, your monthly mortgage payments contribute to your home’s equity growth. In fact, one of the biggest advantages of owning a house is building equity. If you feel like you need to build generational wealth at this point, then it may be the right time to buy a house. For example, there are a lot of houses for sale in Karachi that might be perfect for you.
Conclusion
Buying a house is a huge decision for many people. For some, it is even a milestone achievement. Hence, it is important to ensure you are financially (as well as mentally) ready to own a house. The above mentioned signs can serve as a checklist before making your final decision.
For more guidelines for purchasing a property, visit Graana.com.�
