Are you ready for a home together?

By Drum Digital
13 October 2014

How do you know if you’re ready to purchase your own piece of financial freedom together?

Owning a home is a key step toward financial independence.

If  you’re not ready, home ownership can turn into a financial nightmare.

How do you know if you’re ready to purchase your own piece of financial freedom together?

You’re prepared to live in one area for the next five years

Owning a home limits your flexibility. That’s fine if your career is stable, but if you’re climbing the corporate ladder or looking to change careers, flexibility is crucial. A home could prevent you from moving to take advantage of a career opportunity.

You have a significant amount of money saved for a deposit

While it might be possible to get away with only making a small deposit for your home,  you’ll end up paying for it in the long run.

You are likely to be offered a lower interest rate if you put 20% or more down on your home. This reduction in interest rate alone will save you additional thousands over the life of your loan.

The higher your deposit, the less you’ll need to finance which in turn will ultimately reduce the total amount you pay in interest.

You’re prepared for the extra expenses associated with owning a home

You’ll need to budget for expenses such as home insurance costs, property taxes, and utilities.

Another important expense that many forget to factor in is that of maintenance. Water heaters breaking pipes bursting and the sudden replacement of appliances are commonplace in a home.

You’re ready for the time commitment

Owning a home is not like renting. As a renter you can simply call the landlord when your toilet breaks or the dishwasher stops working. Unfortunately, you don’t have this convenience as a home owner.

Home ownership can help you and your family create wealth, but only if you’re ready for it.

It's always best to wait until you are on better financial footing.

-       BLACK AND MARRIED WITH KIDS

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