My Golden Rules for When to Buy Your First Home

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If moving house is a hassle, then buying a house is something else. The most stressful one is probably trying to purchase your first property. Even though you don't also have another home to sell, it's nerve-wracking trying to secure a house or apartment of your own for the first time. I have moved about with my family, but settling down in a more permanent home is the best thing for me. Deciding if you're ready to buy a property isn't an easy thing to do, though. If you're not sure how to make the decision, I have some tips to help you work out whether it's the right step for you to take.

You've Saved Up

The number one sign of whether you're ready to buy a house is if you can afford it. You can wish for a home of your own all you like. But if you don't have the money for a deposit, nothing is going to happen. It doesn't matter how you got it. Maybe you saved up; perhaps it was an inheritance or your parents have given you a gift. However you got hold of the money, you need enough to get a mortgage and cover the costs of buying. It's not just the home itself you'll have to pay for. There are other expenses too, such as mortgage fees.

Your Finances Are in Order

You may have the money to get you started, but do you have the cash to keep you going? By the time you buy a home, you need to be able to prove you're financially responsible. If you can't show that you can handle money and spend it on the right things, you could struggle to get a mortgage. Use a site like https://www.tomorrowfinance.com.au to compare different mortgage rates. You can match them up to what you can afford. Check your credit rating to ensure that it's in good health, and you're ready to go.

You Want to Commit to a Home

If you want to buy your first home, you should be prepared to stay there for a few years. You don't have to want to settle down with a family. Perhaps you still enjoy travelling all over the world, but you want a permanent home to return to. You need to be prepared to stick with your first home for a while. The cost of moving again will be expensive.

You're Ready to Look After a Home

When you're renting, you have to take good care of the home. But it's not the same as when you have one of your own. Your landlord takes care of any major maintenance issues, so you don't have to. When you have your own house or apartment, you have to keep it in good shape. Calling contractors for repairs, performing DIY and even making home improvements will all be on the books.

There's no rush to buy your first home, but it's a good idea to start saving long before you want one. You'll know when you're ready emotionally, but make sure you're prepared financially too.