It goes without saying that buying your first house is solely your decision. A salesperson at the retail store might persuade you to try the new shampoo that is great for hair, but it is unlikely that anyone can force you into buying a house in Australia. If you think that you are ready to finalize the deal and become a first-time homeowner, then you must carefully look into the reasons behind your decision.
Are you buying your first house just because all your friends are already homeowners? Is it just an impulsive act? or are you actually ready to commit yourself to the long term ownership of a property or a house?
Investing in real estate should always be based on careful planning, your financial status, future goals as well as the current and expected trends in property dealing.
If you are unsure about when to buy your first house, then read the following article where we discuss the common signs signalling that you are ready to buy your own house.
1. You Have a Reliable Source of Income
Having a sufficient amount of savings should not motivate you to buy your first house unless you also have a good source of income. You might be able to deposit the down payment easily and based on your calculations, also cover the monthly payments without any trouble. But have you accounted for various extra expenses that arise with the ownership and maintenance of a house? Plus in case there is any personal emergency, or any other untoward situation arises, will you be able to handle the financial burden?
2. You Have a Stellar Credit Report
A good credit report can significantly lower the interest rates on your mortgage and also help you qualify for loans with a lower down payment. Thus, if your credit report looks good, you haven’t missed a single payment over the last few years, and if your debts are under control, then it is a good time to consider buying your first house.
3. You Have Decided to Settle Down
Many people prefer to buy their first house when they are about to start their own family or are embarking on a new journey. If you are still living the life of a ‘college’ student, partying every now and then, then the burden of a mortgage might become too pressurizing for you. Also, unless you are sure about living in the present city for the next few years, do not plan on buying a house in Australia. If you intend to relocate in the near future, then opting for rentals might be better for you.
If you meet the above criteria, then you are probably ready to buy your first house.
Learn more tips on buying your first home by reading our next article for soon-to-be homeowners.