When not to own a property…
1. When other people are pressuring you
When you reach a certain age or start a family or get married, you may feel pressured to buy a home. Family and friends may be of the opinion that now is the right time to buy a home and “settle down.”
It is vital that you assess the situation for yourself by honestly asking if you are ready to take on this commitment and financially stable enough to own a home.
Until you (or you and your spouse) feel ready to commit to buying a home, you should not do so, no matter what your family or friends think.
2. When you plan to relocate
If your job involves you being transferred often or you yourself plan to be relocated, you’re better off renting rather than buying a new house each time you move.
The rule of thumb is to buy a home only if you plan on being in an area for at least five years. Owning a home also comes with its fair share of troubles. For example, if you lose your job, it can be tough to pay your mortgage or move for a new job.
3. Just because you qualify for a mortgage
Qualifying for a mortgage doesn’t mean you should own a home. It’s a good idea to address any spending issues or debt before you buy a home.
Also, it’s highly advisable to set up a budget before you buy a home so you know how expensive a home you can afford.
Besides, saving a down payment (which is substantial) is a big preparation before purchasing a house.
4. When you’re heavily in debt
If you are carrying large amounts of debt, you should not buy a home. You will struggle to pay your mortgage, and this could severely damage your credit and financial health.
5. When you haven’t considered the hidden costs
Home maintenance is costly. If buying a home is already stretching your budget, to begin with, there are chances that you will not be able to cover home repairs and monthly maintenance costs.
Now that you have these guidelines, you can make a more informed decision on whether to keep renting or make the commitment to buy.
Have you read "5 Reasons to Buy Property"? Read it here.
This article was originally written by Sharina Ahmad of PropertyAdvisor.my, Malaysia’s most comprehensive source of property data, property analytics and insights.