Who does not want to have their own house? Everyone does, but not everyone can. For most people, the reason is financial restrictions, while for a few, it is a personal choice. Staying in a rented apartment has its drawbacks and the growing rent is a major one. Having an own house undoubtedly provides a sense of security and peace of mind. When it comes to buying a house, the decision is mostly emotional. However, buying a house is a huge financial commitment and hence, there are a few things that you should keep into consideration when you resign from your rent and decide to buy a house.
How long are you planning to stay in the area?
Renting a house means having a house for a certain period of time. When the contract is over, you will need to relocate. It leads to the trouble of finding a new place and shifting all your things. By buying a house, you can say goodbye to all the trouble of relocating. You can start a family and lead your life peacefully without having to think about the contract. However, this is only if you are planning to stay in the same area for a long time. If you have a transferable job or if you plan to move somewhere else after a few months or years, buying a house may not be a good decision. When you move somewhere else, you will end up bearing the management cost of your house and the burden of your Home Loan EMI, if any.
Can you afford the down payment?
Down payment has a big impact on your mortgage. If you have a sufficient amount for the down payment, it can bring down your loan amount to a great deal and thus lowering the EMI. Before opting for a house loan, assess your savings and see how much down payment you can afford. If you do not have that many savings for a down payment and do not want to take a huge house loan as well, you can wait a few more days and try to save more money. Waiting for a few more days is better than facing a huge EMI.
Rent or EMI – which one is more convenient for you?
Paying rent every month adds to your monthly expenses. Furthermore, the landlord will ask you to increase the rent every now and then. Having one house seems to be way more convenient from this aspect. However, in the case of a house loan, EMI is as much of a monthly expense as rent. Hence, before you start applying for a house loan, ensure that you will be able to manage your EMIs properly.
Does the house cater to all your needs?
Buying a house means saying goodbye to all the difficulties of staying in a rented house. Hence, you must ensure that the house you are buying serves the needs of you and your family members. If you have to compromise on your comfort or lifestyle, buying a house may not be worth it. Remember, you can always move from one rented apartment to another, but relocating after buying a house will not be as convenient.
Are you familiar with the costs associated with homeownership?
When you buy a house you must know the costs that come with homeownership. Other than the monthly EMI and electric bills, there are other expenses as well. You will have to pay property taxes, utility bills and so on. Moreover, unlike a rented house, where you transfer the money to the landlord when you have your own house, you will have to pay all the bills directly. If the house needs any repair or renovation, you will have to bear the expenses.
Managing a house is a big task and so is bearing the burden of a loan. However, you can stay in your house on your terms while paying the home loan EMIs. Moreover, having your own place is always a better feeling than living someone else’s house.
