To buy or not to buy a house that is the question !
Over the last five years average city house prices outpace earnings growth making the decision of buying a house harder and harder, especially for the young people who are choosing to live with their parents and put off buying a home until later in their lives.
If your financial situation permits you to think of buying a house, before getting on the property ladder you need to consider some important factors related to where you stand exactly and if renting is a more suitable solution for you at this point.
Given that your planning brought you to the point that you are feeling confident to proceed in one of your biggest purchases of your life, now is the time to take into account some other important factors that you may not think of yet.
Buying a house means that you have thought of settling down, that choice it’s going to be a lifetime decision for you and you must be very careful with the steps that follow.
You need to have enough cash saved for a 20% down payment plus fees. You also have to be sure that your budget can handle along with the mortgage the taxes, maintenance and incidental costs every month!
If you buy a home, you’ll have to pay for:
Legal costs such as solicitor’s fees
Your monthly bills
If you stretch your budget to the limit, you might not have money for Saturday night out dinners, holidays or entertainment.
Your renting time will be over and that means less flexibility. For example, selling up and moving is going to be more expensive as you are going to have estate agency and legal fees to pay.
If you are not prepared for all of these, then you have to wait a little longer until you are ready to deal with all the possible expenses that may come in your way.
Renting a house, especially when you are young it may be the only option with the current financial situation but it also gives you the freedom to pursue possibilities related to your career, as you can easily leave and work abroad without any engagements holding you back. You can try living the urban and the suburban way of life until you find out what suits you best. It can also help you to get to know yourself better so when the time comes you’ll make the best choices for yourself and your family.