Are you ready to buy a property? Tick these 3 boxes
The current residential property market presents a good opportunity for property buyers, but how do you know if you are ready to own a property?
Before committing to an offer to purchase, potential buyers need to be absolutely certain that they are ready to own a home and take on all the related responsibilities as it is one of the biggest financial commitments a person will make in their lifetime.
While there are a number of factors potential buyers need to take into consideration when searching for their ideal home, such as the location and type of property that would best suit their needs, as well as their budget, there are three key considerations that indicate that a buyer is truly ready for homeownership.
1. Financial commitment and contingency plans
Aside from being able to afford the monthly repayments with a long-term view, buyers also need to assess the other costs of homeownership and ensure these fit into their monthly budget.
From municipal accounts and insurance to other miscellaneous expenses that may occur from time to time, such as urgent repairs or maintenance that need to be undertaken, owning a home takes financial commitment. Not only that, but buyers also need to have a contingency plan for if things go wrong.
What if you lose your job and can’t afford the bond repayments? Buyers should ideally have a couple of months’ worth of expenses saved up to tide them over while they look for another job, for example. Having a financial contingency plan in place for any number of financial ‘what-ifs’ is an essential aspect of home-buying readiness.
2. Maintenance and general upkeep
Owning a home requires dedication to maintenance and general upkeep as a bare minimum.
As a home is a huge financial investment, it needs to be protected and nurtured so it can attain its full growth potential. This means that at the very least, potential buyers need to be able to commit to keeping their property in good repair on an ongoing basis.
This also probably involves savings of some kind to dip into should the need for larger repairs or upgrades arise.
3. Long-term commitment
Buying a home is a long-term commitment, or at least it should be if buyers want to benefit from any capital appreciation. This means that whatever home is being considered, buyers need to make sure it fits in with their long-term plans.
A two bedroom apartment may not be the ideal home for a young family looking to grow, but would be the perfect spot for a young couple starting out.
While unexpected events do happen, buyers need to try as best as they can to look ahead for the next 10 years and be reasonably sure that the home they buy will be able to accommodate their plans.
Timing is everything, and buyers shouldn’t rush into a homeownership decision without very careful due consideration of all the above factors over and above their personal wants and needs.
Author: Property 24