When it comes to buying your first home, it comes with a mixed bag of emotions. You feel happy, nervous, scared, excited and more, all at the same time. It is a very important time in your life after all, and not a decision to be taken lightly. One very important question we have to ask is
When is the best time to buy a house?
Is it better to wait till you’re older? Or should you buy now when you are still young?
Well, the fact of the matter is that there is no such thing as the perfect age to buy a house. When it comes to finally making the decision, it is more about individual readiness.
It is worth noting that the older you get the potential term given for a loan decreases. The maximum term (depending on the bank) is usually 35 years from the day of the loan, or if you are closer to retirement age, the number of years before you reach the age of 65.
So if you were to buy a home at the age of 30 your maximum loan tenure would be 35 years or less, and if you buy a home at 40 your loan tenure goes down to 25 years or less.
A shorter tenure could mean higher monthly repayments which means lower affordability and less freedom when buying. You also have to consider the fact that waiting might be an expensive decision as housing prices are expected to go up with time.
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So should you buy earlier?
Buying a home is a huge financial responsibility and attempting to buy a home before you are ready may hamper your financial goals in the future.
You’re likely to be ready to buy your first home if you:
- Have a steady income.
- Have sufficient money for the required down payment and closing costs.
- Have a healthy emergency fund.
- Existing debt levels are healthy and not excessive.
- Have improved your credit as much as possible.
- Can comfortably afford your mortgage payments.
Buying a home means committing to a long-term investment, one which requires time, patience and proper preparedness to bear fruit. Make sure that you are financially mature enough before you make this kind of investment commitment. In the end, the choice is yours to make; so be sure to keep yourself informed so that you can make the right move when ready.
Want to know more about home buying and making a property investment? We want to hear from you, send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.
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