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5 Signs That It Is Time You Buy An Apartment For Yourself
Are you considering whether you should purchase an apartment? Well you are not alone. Plenty of people are in EXACTLY the same boat as you! So don’t feel lonely. It could be because that you are in a stage in life where major changes are taking shape. It could even be that you have nothing better to do and feel it’s time to own your own home. No matter what your situation for entertaining these thoughts in your head, here are a couple of tips that should help you decide whether the ‘time is right’:
Has your rent gone up recently? It is not unique to you. It is also not due to a landlord with protruding horns on his head trying to get one over you. Don’t worry; it happens to absolutely everybody. You may be surprised to know this, but in some cases, rent can actually be FAR higher than the mortgage repayments. They are more present for real estate in bustling prime areas.
If you have enough for the deposit on an apartment saved up then you may want to look into the idea of purchasing one for yourself. You may actually end up saving a significant amount of cash each month. The even better part is that your house might appreciate in value while you are repaying the mortgage slowly.
It is not uncommon for somebody with a fairly good credit history to save a good couple of hundred dollars each month when they score a fantastic mortgage deal. In fact, there usually always is a better mortgage around. You just need to do the research yourself or hire a mortgage broker you can trust to help you. Predatory loans are those that just sound out of place, and which you want to avoid.
You are Looking to Settle Down
Do you have a stable job? Are you looking start a family? Are you planning on staying in the same location for a while? If the answer to all of those questions is a resounding YES, then it may be worth looking into actually making a purchase. I would not advocate looking into an apartment if you are planning on changing your circumstances over the next few years (i.e. may be looking for a new job, or perhaps moving in with a partner and having children), but if you are perfectly settled then that is a surefire sign that you should be purchasing.
You might think that it is as easy as eating pie to adapt to a change in surroundings. But it may not be so for your children and spouse. They may have to change schools, lose their best friends, explore new unfamiliar hangouts, etc. It’s not easy being a kid these days. So it’s no excuse if the people around you have to suffer for your indecisive housing decisions.
Can You Afford It?
If you can actually afford an apartment then I see no reason as to why you would not go hunting for one now. You see, prices are fairly low at the moment. They are starting to creep up though. If you can afford it then buy now. If anything it is going to be a pretty sound investment.
Countless real estate experts who conduct workshops for the public always encourage their students to buy when the opportunity arise. Because in the case of real estate investments, good opportunities do not come up very often. Market cycles can run for decades before going full circle. So if you can identify a stage within that cycle which is advantageous to buy, you may want to take that shot.
Your Debt is Under Control and You Have a Good Credit Report
You should NEVER look into the idea of purchasing an apartment unless you are sure that your debt is under control (i.e. you do not have thousands upon thousands of dollars of debt that has to be dealt with). If your credit history has been a little poor recently (i.e. for the past five years you have had a lot of financial issues) then continue renting for a while.
The mortgage repayments are going to be far too high for you. If you have questionable credit, you don’t even know if you are able to get the financing approved for your purchase. If you have an undesirable credit, you will usually have a feeling something is wrong. You just don’t want to face the problem head on until it is absolutely necessary. Work on that credit report and then come back to dealing with purchasing a home later on.
Good credit can qualify you for better mortgage rates. And even small savings in interest can work out to huge numbers in dollar savings accumulated over the long run.
Your Money is in Good Shape
I covered this in a bit of depth before. It is important that you have a stable income. If you do not know where your next paycheck is coming from then purchasing an apartment is definitely NOT for you. If the place you work is in a bit of financial difficulty then purchasing an apartment is NOT for you (because of the risk of redundancy).
It is also important that you have at least six months of emergency funds at your disposal (so you can cover the costs of bills and the like should you be dealing with a bit of a cash emergency). If you are living month to month then you should avoid buying an apartment right now. It is only going to cause difficulties later on.
And finally, don’t work out your calculations putting too much dependency on future cash flow. That promotion you have been promised might not arrive. The big bonus paycheck you are looking forward to might never be signed. That million dollar deal you have been trying to close could be scampered. And your spouse might have financial problems that are being hidden from you.
If the mortgage repayments are putting a 50% burden on your household income, you are already stretching it. The target you want to hit is about 30% to 40%, and lower.