Signs You’re Ready To Buy Your First Place
Buying a home–whether that’s a two-bedroom condo or a four-bedroom house with a garage and pool–feels SO adult. Even people who feel pretty darn grownup, and who are in fact in their late thirties, can hear the question, “You thinking of buying?” And fall into fits of laughter as if it’s a joke. If you live in a city, this is probably especially true since everybody rents in the city. But property is one of the most solid investments you can make. Even when property values decrease, you still have a place to live. Once you’ve paid it off, that’s yours–you’ll never need to worry about handing over a paycheck every month just to make sure you have a roof over your head. And, a lot of younger couples don’t realize that buying property is more doable than they think. So, here are the signs that you are ready to buy your own place.
A mortgage would be less or equal to your rent
You’ve calculated it out and, your mortgage payments would be less than or at least equal to your current rent payments. That means you could put the money you’re already paying each month into something that would ultimately belong to you.
You take better care of your place than your landlord
You honestly take more pride in your apartment than your landlord who owns it. You thoroughly research plumbers and contractors and find better professionals to care for the place than the owner does.
You want a solid investment
You’d really like to invest in something other than some elusive fund that you can only see on charts. You want an investment that you can touch.
You want kids in the next two years
It’s best to be settled in your home before they arrive. Getting used to taking care of your own home takes at least a year or two. Don’t do that on top of getting used to having kids.
You keep putting guests up in hotels
You love to host and you host often. You can even afford to put guests up in hotels! Which you have to do because your place is so small. Wouldn’t that money be better spent on a home with some guest rooms?
You have several storage units
You have so many valuables and precious belongings, but so little place to put them, that you rent several storage units. That means you regularly drive away from your home to access your things. That’s silly.
You’ve managed money well for five years
For five years or more you have had a smart and stable financial plan and have been sticking to it. You have investment accounts that you put regular sums into on a regular basis. You have consistently reached and even outperformed your goals.
You rent an off-site office space
You rent an office space. You technically work from home but you don’t have room for an office at home, but you do have the money for a very nice office you rent elsewhere.
You travel to be on grass every day
Every day you pack up snacks, books, the dog, or even your child, and drive to a park so you can hang out in nature. It sure would be easier to have a yard.
You are stifled in decorating
You have the money and time to get really into interior decorating but you are stifled because of all the rules in your apartment building.
Friends of equal income own places
Several of your friends who you happen to know are in very similar financial circumstances as yours own their places.
You price places in your free time
You spend your free time looking at places for sale. You’re subscribed to several newsletters about properties for sale in your area. You even get alerts of new properties on your phone.
You are so sick of close neighbors
You really don’t know if you can tolerate sharing walls with neighbors for one more day.
In fact, you leave town often
In fact, you get out of town once a month or so just to escape apartment living. You often go stay at an AirBnb to have some privacy.
You wouldn’t even need a consignor
At this point you likely wouldn’t need a cosigner. You have excellent credit and borrowing history. And you have the money for the down payment on your own or with your partner.