There are many factors to account for when deciding if it’s the right time to purchase your first home, and you need to think not just about your own financial circumstances, but those of the property market, too.
While knowing the right time to purchase a home is often impossible (and not least because the housing market can change so quickly), it can be helpful to base your decision on whether to buy or not, on your own personal reasons, rather than relying solely on external factors that are beyond your control.
Try asking yourself some of the following questions and while the answers will be entirely subjective and unique to you, they should help clarify your perspective and make it easier to decide whether now is the right time to buy, or not:
Q: Will I be in a better position financially, if I buy my first home now?
Q: Am I earning enough money now to be able to afford a new home and maintain my existing lifestyle?
Q: Do I feel confident that my current employment status is stable?
Q: Have I saved up enough money to put towards a down payment?
Q: How long do I plan to stay in my new home?
Q: Might I be in a position in which I have to sell my new home quickly and risk losing money?
Q: When thinking about my life goals, does buying a new home bring me closer to them?
Q: Am I being pressured (or feel as if I’m being pressured) to buy a home or do I genuinely want to buy somewhere now?
Q: Am I waiting to buy even though I’m ready, because I’m worried that property prices might drop?
If you’re trying to decide whether now is the right time for you to buy a home, it’s important to carefully consider all of the questions above, and you may even have other questions to answer, too.
Buying a new home can be a stressful experience no matter when you do it, even if the market is hot and prices are low. To help plan for purchasing your first home, why not meet with a local mortgage broker and work through a mortgage pre-approval. This can help you determine what you can afford to buy and what lenders might expect from you. Your broker can help guide you with every aspect of a mortgage, in fact, and is a very useful person to get to know throughout the entire process of buying your first home.