Buying your own home is a blessing and the biggest dream for most of us because it helps us make wealth, build equity and save money that we usually spend on rent. Having your home in Pakistan is certainly an amazing thing but it can also be bane at the same time, if you are not prepared for it. It may affect negatively on you and you may trap yourself in additional financial responsibility. Before taking the biggest step of your life, you must make sure you are ready to afford and own a home. Following are a few pointers that will help you make the right decision at the right time.
Stable Source of Income
Home ownership comes with hidden and unexpected costs along the time and if you are not prepared for it, it can break your bank. Moreover, if you are planning to avail mortgage option, then having a salary is not enough to qualify for mortgage. Before lending you money for home, bank will make sure you have stable source of income, which is more for your needs and you can support interest plus monthly instalments from it. Evaluate yourself before planning to own a home.
You have Enough for Down Payment
Living salary to salary is not conducive with buying a home, so you must have access to additional funds from where you can make down payment of the chosen home and cover the closing costs. Hidden costs also include repair costs, legal fees, property transfer charges and property taxes along with various miscellaneous expenses. Even if you want to rely on loan, bank will make sure you have enough funds to close the deal and also have healthy cash-to-debt range. The stronger you are in this regard, the more are the chances you will qualify for loan.
Evaluate Market Condition
You may have talked to real estate experts regarding investment, but remember one thing that most of the experts talk about real estate in national terms or in the cities’ context. However, the market varies from area to area. Therefore, before buying home, make sure you are investing in the right locality. It is essential because, if you decide to sell the property anytime in future, it can give you huge returns.
Evaluate Your Future Plans
Experts at HomesPakistan state that before investing your hard-earned money in home, think about your future plans. Are you going to stay put in the given city for at least 7 to 10 years? Is it wise to buy home there? It is crucial evaluation because the transaction cost of buying a home is significant and you can afford gaining nothing or a little from your investment, if you will shift to another city after 2 years. Also keep the historical rate of home value appreciation in view as it will help you decide whether you should invest in real estate or not. Seeing the numbers, you may decide to continue living on rent than buying your own home.
After reading all these points, if you are still unable to decide about home ownership, it is best to wait until you become absolutely sure. Explore all the options before you commit as buying your home can be stressful so you must be sure before closing the deal.