For those of you who belong to the milineal generation, currently living in a parent’s house or in a rented house, may often wonder when is the right time to buy a house?
Do you know? If the sooner you decide to buy it then the investment value promised in the future will also be greater. In addition, of course you will feel more comfortable and free to live in their own home.
But before deciding to buy a house, check the current financial condition so you can start from the following things.
1. Have a reliable income
When deciding to buy a home with installments, of course you must be sure can really pay it. If you live alone, you must already be a full-time employee in a company where you work.
Or when staying with a partner then one of you is already confident with the position and future of the company where work.
2. Doesn’t have a large expense burden
Buying a home is a big decision in life and will also affect your financial situation. In order for the financial condition to remain stable, make sure when buying your home is not currently having other large spending expenses such as installing a car or land.
3. Not being in debt problems
In order for the home purchase process to be easier, especially if you plan to install it, check back the financial condition in the bank or other financial institutions whether good and not in debt arrears. This is so that banks or financial institutions can more quickly approve the loan application.
4. Have sufficient emergency funds
When owning a home there will be some future expenditures that may not have been taken into account before, therefore it is important to have sufficient emergency funds to anticipate those expenses.
The amount of emergency funds to be prepared ranges from 4 to 12 months worth of expenditure.
5. Able to pay 5-10% of the total price of the house
In buying a home, it usually takes 3-20% to pay the down payment. It is also the main determinant whether you can afford a home or not. It’s better if you wait until you can pay at least 5% but still advised 10 – 20% of the total price of the house with cash.
6. Can and will take care of own house
Based on the experience of new people who have a house, in the first year there is just spending to fix some damaged things or buy new equipment in the house. In addition, you also have to be ready if someday the house needs some renovation.
If you are accustomed to take care of and do the work yourself then the expenses will be more controlled.