Before you buy a house, you first need to have a stable source of income and savings for the deposit. But these are just the initial requirements. Buying a house is a crucial life decision. Before signing any papers, ask yourself these questions:
Where do you see yourself in 5 years?
If you see yourself living elsewhere, then now might not be the best time to buy a house. If you’re planning on buying a house within the next two years and see yourself living in this house for at least three years, then it might be a good idea to buy.
Can you support yourself, your family and a mortgage?
The mortgage you have to pay after you buy that two bedroom apartment in Brisbane isn’t going to go away unless you pay it off completely. It will be a financial pressure point, regardless of your family situation. Make sure your finances can accommodate your mortgage and your growing family.
Is your monthly income enough?
Before buying a house, do research on all the possible expenses you need to pay off every month. This includes utility payments, day-to-day expenses and emergency expenses.
To test whether your monthly income can comfortably accommodate your new lifestyle as a homeowner, take out what you will spend on your house every month and put it in a savings account. Try to live on the remaining funds. If the budget constraints are not impossible, then your finances are ready for the purchase.
Like any market, real estate is subject to ups and downs. Don’t buy that house at top dollar only to realise prizes will plummet in the next six months. Personal preparation is essential, but so are factors beyond your control.