Five Reasons It Is Not the Right Time to Buy a House and Five Reasons Why It is

Buying a home is everyone's dream 😄. However, if you buy one when not ready, you can face major financial setbacks. For instance, if you overspend on it, you might become a house poorer because the mortgage payment may be too big for you. This might lead to falling short on your monthly bills or become a big failure if working toward your long-term financial goals.

You must buy a home for the right reasons. Buy a house because you are ready and not because you feel like you need to have one at a certain time in your life. Read here 9 things to consider before buying a home

Here are five reasons you should not buy a home and five reasons why buying a home might be a good move when faced with a tough decision whether to buy or rent.

1.       You Qualify For a Mortgage

Even if you qualify to get a mortgage, that does not mean you are ready to buy a house. It is always a good idea to address the debt part or spending issue before purchasing a home. Set up a budget so you know how much you can afford. Besides, if you want to get the best possible mortgage, it is a good idea to save up and have a down payment and not to depend entirely on the mortgage package.

2.       You are Planning On Moving

If you know there is a possibility of moving due to another life event or you might transfer after school graduation; you are better off renting a home instead of buying a new house every time you move.

One proven rule of thumb is buying a home if planning to be around one area for more than five years. Owning a home can be difficult at times, mostly if you bought it on a mortgage. For instance, it can be tough to pay your mortgage if you lose a job or move to a new job.

3.       Pressure from People

You might experience a lot of pressure to buy a home when you get married or reach a certain age. Friends and family may have expectations that it is time to settle down or to own a house.

The most important time to buy a home is when you or your spouse (if married) feel ready to do so and not because you have given in to the pressures from family and friends.

4.       Home repairs

When buying a home, you need to consider the inevitable cost of home maintenance. To begin with, if purchasing a home is stretching your budget, chances are it will be difficult for you to cover annual maintenances and home repairs costs. In addition, if you travel a lot, it will be difficult for you to take care of the backyard and paying someone to do it comes with the extra cost you may not have planned.

5.       Debt

Buying a house when you already have a large amount of debt may not be a good idea. For instance, if you get a mortgage when having other debts, paying for it will severely damage your financial health. With a large amount of debt, taking more debt in the form of a mortgage can be very unwise.

Five Reasons Why It is The Right Time to Buy a House

1.       You Are Secure In Your Job

If you are confident you will stay in your current job for a longer time, it is a good idea to buy a home nearby. With a steady income, it will be easier to build equity, stick to a budget, and pay your mortgage. With your own home, you will not waste money on rent.

2.       Building Equity

A major benefit of owning a home is building equity. Rather than wasting money by paying rent every other month, you will be putting it toward owning a home. Even if you wish to sell the house, later on, you are sure you will recoup the money. Remember, real estate is an appreciating asset, and your house will always increase in value.

3.       You Feel Ready

Buying a home is not only a substantial financial decision but also an emotional one. That is the reason you might be nervous when making such a huge purchase. If you feel ready both emotionally and financially, take the step and buy one. Owning a home gives a sense of accomplishment, and it provides security. It also set you up for financial success.

4.       Stability

Owning a home gives a sense of security and stability. In this life, we get to a point we want stability, and purchasing a house gives you a place to call your own. You invest in your future.

5.       The Price of the House Tend To Rise Over Time.

For the past ten years, the home price in Kenya has risen to over 50% over the years, and the trend is likely to continue. Thus, by purchasing a home, you are putting your capital in a safe investment where it will certainly grow.

Verdict

All the mentioned factors need to be considered and weighed before you decide whether it is the right time to buy a home. Ensure everyone involved is on board before making this huge decision. If you do not consider all the aspects, you might find yourself struggling to pay your mortgage, or it can be in foreclosure.