4 Questions To Ask Yourself to Check If You Are Ready To Own A Home by MyProperty

You might think that the most challenging parts of buying a home are the house-hunting and  paying for the property. Before you continue with these nerve-racking tasks, you’ll need to assess first whether or not you are prepared for homeownership. If you have been renting for several years, it can be challenging to determine if you are ready to take on such a huge investment. 

For starters, owning a home is very different from renting. Homeownership involves financial and logistical responsibilities such as doing repairs, remodeling, and property maintenance. Ask yourself these four questions to help you decide whether or not you are ready to own your place.

What Are My Home Essentials?

Most of the time, people jump into buying their dream home without having a clear picture of what they want in a home.  Sure, you might know your preferred aesthetics for your dream home but it is vital to determine your non-negotiables so that you can choose your property wisely. Write down the must-haves that your home should possess. If you have a partner, it would be best to come up with a mutual decision regarding the most crucial elements of your target property. 

 

It is also helpful to know the exact dimensions of your future home so that you will choose the right furniture and appliances that can fit into your home. You wouldn’t want to commit the mistake of buying bulky items that won’t fit your rooms or decor items that don’t suit your home’s interior design. 

Do I Have The Means To Pay For The Home?

Being a homeowner involves financial responsibility. Before investing in a condo unit or house and lot, it is crucial to assess if you are ready to deal with the costs involved in owning a home. For example, one of the biggest upfront expenses is your home’s downpayment. While there isn’t a definite answer on how much cash you should have for your downpayment, it is important to remember that the more money you deposit, the easier it will be to fulfill future monthly mortgage payments.

 

Financial experts recommend that you target at least a 20 percent downpayment. If your dream home costs around a million pesos, you’ll need at least Php 200,000 ready in your bank account. It is also worth checking out your chosen property developer’s assistance program so you can manage your mortgage payments.

What Other Housing Expenses Should I Consider?

Aside from the downpayment, you’ll also have to consider other expenses such as taxes, utilities, repairs and maintenance, homeowners’ association fees, parking fees, and more. Keep these potential expenses in mind during the home buying stage. It is best to take out a home loan that doesn’t exceed 25 percent of your take-home pay. Otherwise, you won’t have enough cash to cover other fees.

Am I Ready to Settle Down?

Owning a home means settling down in one place permanently — or for a long period of time. If your job requires you to travel frequently or relocate to various areas, it is ideal to postpone home-buying plans to avoid being tied down to a particular location. However, if you’ve decided to settle down in your chosen neighborhood, then this might be the sign that you are ready to be a homeowner. 

 

The bottom line of homeownership is that it is a huge financial investment and one of the biggest life decisions you’ll make. So before you deposit the cash and sign the papers, ask yourself these four questions to see if you are ready to own a home. If yes, then carefully pick from among condo units or houses and lots that are well-suited to your housing goals.

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