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Is it the right time to buy my own home? − Money Essentials #8

by Money Puzzle   ·  June 23, 2022   ·  

This is one of those money decisions which is almost always answered emotionally rather
than logically. However, in being carried away by emotions you may end up damaging your
financial future and adding on needless stress to perform professionally too.

This can happen if in the emotion to buy your own home, you end up financing 80%-90% of
the home value with a large-sized loan. The single-minded pursuit of ‘own home’ can make
us overlook many other factors which are involved.

While there is no set formula, you know you are ready to buy when you are sure of the city,
locality, and micro-community you want to spend your life in. You are ready to buy when you
can finance at least 50%-60% of the home value with your savings. You are ready to buy
when you have stability in your job and steady visibility of future income.

While buying a house will always be an emotional decision, try not to get carried away by
real estate market trends, interest rate offers by banks, and fancy marketing by developers
and builders.

Once made, this decision is hard to reverse if you are unsatisfied with the developer or your
own choice. Hence, do not rush into buying your own home, it’s better to wait and balance
out this emotional decision with some reasonable logic too.

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