FEB 28, 2023
You might have heard from a lot of people in real estate that buying a house is one of the smartest wealth creation moves you can make. Although that's true, the advice shouldn't apply to everyone and anyone. Below are the tell-tale signs that someone isn't ready to make their first move into real estate.
Yes, commitment issues are scary in a relationship, but they're even worse when it comes to buying property. When you're buying a house, you're basically entering into a committed relationship with the entire location the house is in. If you're not settled yet or have a stable job, this can make things tricky as you might quickly find yourself wanting to change your scenery.
Renting is great for people that don't want to have to deal with the repairs & maintenance responsibilities that come with homeownership. If you're a renter, any issue only needs to be notified to the landlord and you've done your job. As a landlord/owner, it's your financial and legal responsibility to ensure that your property is habitable — which will end up costing you on top of your existing mortgage payments.
An emergency fund is money that's set aside to sustain your ongoing expenses for about 6-12 months should all your recurring income stop abruptly. Most homebuyers don't consider that their employment & health might change at any point and so are left with little to nothing after they close on a new home.
Buying any form of real estate isn't like buying a bar of chocolate from the checkout counter. Besides the sticker price, there are a lot of hidden costs to consider that include: closing costs, HOA dues, Insurance, and monthly utilities.
This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.