My husband and I have been married for 14 years. One of our long time dreams is to own a house that we can call our own. Since we were married, we were blessed to be living with my husband’s parents and we are happily living in this house for free.
Later this year when COVID-19 happened, I was forced to be working from home due to classes being done online. I had to transition our house where I can hold online classes free from distractions and intermissions. So I made a little corner at home as my working area. I wanted to tweak some of the sections of the house but I will still have to ask permission because we don’t own the house. It was at this time that I thought what if we are going to pursue our dream of buying a new house.
However, buying a house is a big decision. It requires time, effort and most of all money. So, the question I asked about myself, “are we ready to buy a house?” While reading some advice on home purchasing, I have compiled 3 important things to consider when buying a house. Here it goes…
1. Money, Cost and Affordability
Do you have enough money to buy a house? Can you really afford the house that you like? Can you afford the down payment? Most lenders would recommend not to spend on a house that would cost more than 28% or 30% of your gross monthly income. If you consider having a house for a mortgage, how much mortgage can you afford? Your ability to afford the house will be determined by the lenders based on your income and the amount of your savings to your bank or lender. You can check out a mortgage calculator that will help you calculate whether you can afford the house that you like and try out different prices that are within your budget.
2. Timing
When is the time to buy a house? Is it a good time to buy a house when there is a crisis? According to Inquirer.net’s article “Is it a good time to buy a house?” by April Lee Tan; “If you and your spouse have job security, and are still renting a house, then it is a good time to buy a house. It is scary to buy a house when there is a crisis such as the ongoing COVID-10 pandemic. However, because of the pandemic, there is a greater chance of buying a house at a much lower price or at more affordable payment terms.”
According to PH Real Estate, the best time to buy a house in the Philippines is during the cold season, the months from October to February. These months are the best times to buy a house as the prices are lowest.
With all these factors on the proper timing on buying a house, most advise would be that the best time to buy a house is when you can afford it.
3. Savings
Do you have enough savings? Buying a house does not only end when you move in. There are other expenses to take care such as repairs, insurance fees, home owners fees and etc. So, with all these fees make sure you have enough money saved in the bank to cope up with other expenses that you need for your house.
Am I ready to buy a house?
With all the readings I’ve done, I have learned not to feel pressured to buy a house just because everyone is buying already or I am no longer comfortable with what I have now. Buying a house is one of the biggest decisions my husband and I will have to make. We will also have to consider whether it will be a good financial investment for us or maybe not. We shall take the time to weigh in all options and considerations before making this big decision. In God’s perfect time, we shall be able to say we are ready!
