“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” –Maya Angelou
Buying a home is one of the most significant and probably the biggest financial investment you will ever make in your life.
In a sense, it is not only a milestone for which you would feel both accomplished and successful. It is also a known responsibility for most. While buying a home affords you security, it also opens you up to financial obligations as well as other commitments—so much so that you would have to be completely sure that you are ready for this investment. Settling down and finding a place to call your own is a big step and sure you may have a lot of options, but you need to determine which would be more financially sound to you: To rent or to rent? So, before you start scouring potential properties for a condo near Makati, you might want to check the list below.
If any of them applies to you, you might be better off renting than buying outright.
- Your credit score is subpar
Your credit score is an integral factor when it comes to having your loans approved. In most cases, it can even be considered as that magical key that would unlock the tight-fisted hands of creditors. In this regard, your credit score should be at the very least impressive. If it is not, then you have to ensure that you can raise that before signing up for a mortgage. Your credit score is an excellent determining factor of the kind of terms and interest rates you would have for your potential mortgage. If you score is not up to speed, then it is highly likely that you would have subpar rate terms as well.
- Your emergency fund is lacking
You might think of this as an insignificant aspect when it comes to budgeting for your home but when things start breaking, you need to have an emergency fund that would help you foot the repair bill. Having your own home means you can no longer rely on a landlord to fix these things for you. With this in mind, it pays to have an emergency savings. If you do not, you might want to build on this first.
- You are not flexible
Agreeing to your mortgage terms is a significant and major commitment. Once you have affixed your signature on the dotted line, that means you can no longer backout. If your lifestyle is not fit for settling down or if you have a keen sense of wanderlust, you might want to put your dreams of owning a home on hold.
- You are easily stressed
Owning a home will inevitably bring you stress—so much so that one could say that homeownership is not for the weak. Apart from the financial strain it will inevitably give you, you would find yourself being frustrated when things start breaking down and needing repairs. This is especially true when your home is still under mortgage. Another thing to add to your list of monthly expenses would definitely put a pall over your euphoria in finally owning a home.