So you have been living with your partner for some years in rental harmony when your conversation turns to buying a home together. While both of you have thought about home ownership before, it’s always seemed a far distant dream with a commitment factor that’s a little daunting.
So how do you know that now is the right time to buy? Let’s look at the signs and see if you are ready to get off that rental roundabout.
Signs that the Time is Right For You to Buy a Home
1. You want more financial certainty in your life: If you find that you are looking for ways to save more, and to build a nest-egg for your future. Plus, you want to accumulate assets and build greater financial stability, not just live life day-to-day. Then these factors may be indicators that it’s time to buy a home. But it’s also important to bear in mind that home buying is a significant, long-term commitment. Therefore, to make any financial gain, you may need to stay in your home for at least 4-years. So if you like to move regularly, then wait to buy a home until you are ready to settle down.
2. You both have stable careers: When you have a home loan it’s important to have job stability. So if you both have a regular income, and you earn a consistent wage, then home buying could be right for you. If, however, you are thinking about changing employment or your career altogether, or you are on a commission or retainer, then it may be best to wait for a little longer before you buy a home.
3. You and your partner are making plans: If you find that you are both talking about your ideal home and how you would like to renovate, then now maybe the time to start looking at your options. Just remember that communication is the key here, as well as compromise, as it is highly unlikely that you will find what you both want, but you should be able to get as close to this as possible.
So before you start looking for a home, sit down and make a list of your requirements. Write down your ‘needs’ and ‘wants’. Needs being aspects of a property that you cannot live without, and wants being what you would like to have. Writing these out before you start your search will allow you to narrow down your selection and ensure that you agree.
4. You know exactly where you want to live: If you both know and agree on the location of where you want to live, then this could be a sign that you are ready to buy. Many couples find that deciding on a location is difficult because their family, friends and work are situated in opposite directions. However, if you are willing to reach an agreement and select a location that is central for you both, then it may be time to start researching the market.
5. You have been saving: If you have both been saving for some years, and you have a sizeable deposit, then it may be time to calculate what you can afford to buy and what expenses will be involved. Expenses typically include stamp duty, council rates, moving costs, and loan application fees. It is also important that you both have considered how you can tighten up your spending and bank more of your disposable income.
6. You work well together as a team: Buying a home is all about teamwork. You have to be able to discuss your options, consider your future plans, and be able to talk openly and honestly about what you want to achieve. You will also need to be able to support each other through some stressful situations, research property together, and visit open inspections and auctions to get a feel of the market before you buy. This process does not need to be daunting, in fact, it can be simplified, if you are both able to offer each other support without arguments or disagreements.