Buying a house it’s not for everyone
Making the leap from renting to buying is thrilling and liberating.
But it’s also a big decision, both for your future and your finances.
It’s a long-term commitment that requires strong financial standing, and in many ways it’s about more than just money.
If any of the following signs strike a chord with you, you may want to delay the home-buying process.
If someone asks why you want to buy a house and your first answer is something along the lines of ‘‘because I’m wasting money on rent’’ or ‘‘because it’s a good investment,’’ you might not be mentally prepared for all the responsibilities that come with home ownership.
It’s smarter to look for a house that meets nonmonetary goals: It’s in your dream neighbourhood or it’s a good place to start a family.
‘‘you might not be mentally prepared for all the responsibilities.’’ Emmie Martin
Even with a full emergency fund, you should still be able to continue putting money away for other goals.
‘‘If you’re saving money every month, that means your cash flow is in good shape, which is a good sign you’re ready to buy a home,’’ Roberge says.
If you can’t spare anything more than the mortgage payment, consider putting off purchasing a home until your cashflow is more stable.
Don’t feel like you need to have every penny worth of debt paid off before you can purchase a home.
But do a deep dive into why you have debt and how you’re planning to deal with it, from student loans to credit card charges.
There are a mountain of hidden costs, from closing fees to taxes, that can add up.
You’ll have to consider things such as property tax, insurance, utilities, moving costs, renovations, and perhaps the most overlooked expense: maintenance.
It’s important to consider your housing budget within the context of your future goals.