Buying a house is a huge financial decision, but it is necessary at some point in your life. In Australia, more than 67% of the 8.3 million households are already homeowners. Now, if you’ve been putting off this decision for a while now, here are some telltale signs that now is the right time to take that leap of faith and buy your own house:
You already have enough savings.
Buying your first home is a huge financial commitment, and one of the best ways to prove to lenders that you are capable of repaying a loan is your ability to save money. A good sign that you have enough savings for a down payment is if you have at least 10% or ideally 20% of the home’s total value. The more money you put towards your down payment, the lesser your mortgage—and its interest—will be. It’s also easier for you to get approved for a loan if you have more money in your savings, plus it’s important to have the extra funds for the additional costs you would incur during the homebuying process.
You have decent credit.
We all incur some credit at some point, but it’s also healthy to work on getting a good credit score because this is one of the first things that lenders will look at when evaluating your loan application. Having a good credit score also has its perks, including a lower interest rate from lenders and easier approval. So, if you’ve already paid off most of your debt and you are doing well with your credit score, then it may be time to invest in your own house.
You are paying expensive rent.
If you think about it, some rental rates are almost the same with mortgage yet you’re still not the owner of that house you’re living in. A lot of first-time homebuyers are hesitant because of the high upfront cost. But if you think about it, those high rental fees could be put towards investing in your own home. If you have enough savings in the bank to take care of the down payment, then it’s time to start finding properties within your budget through AVID.
You are ready for commitment.
More than anything, buying a house is a long-term commitment because you’re spending a good chunk of your hard-earned money on it, and you’re also going to live in the same house for the years to come. You might even start building your family and share memories with the most important people in your life in that house. Owning a house is also a huge responsibility because you need to think about upkeep, improvements, and a lot of other things. But if you feel like you’re ready for commitment, then it’s time to start looking for options depending on the house that you need and what you can afford at the moment. It’s all about taking that leap of faith, after all, and committing yourself to be a homeowner.