If you are a young adult living in Malaysia, this question will eventually crop up in your life. Most people will one day want to settle down permanently in a home of their own rather than renting from strangers or living with your parents forever.
Owning a home doesn’t just make you wealthier, it also gives you a sense of independence and individuality. It is a sign to say that you are finally able to stand on your own two feet and fend for yourself. A home is also an outward expression of a person’s character and can be decorated or renovated to suit different tastes.
Here are some questions you can ask yourself to help decide if you’re ready for home ownership:
1) Do I want to settle here forever?
Wherever you are buying your house, ask yourself if you are okay with the area you’re going to live in, including its people and its culture. This is important as you may be staying here for the rest of your life.
2) Do I still want to explore the world?
If you are young and single, you may want to ask yourself whether you want to settle down to live/work in one fixed place, or is your inner adventurer still gnawing at you to explore new locations. If the answer is yes to the latter, then you’re better off not buying a house just yet.
3) Am I financially stable?
Committing to a housing loan is a long term responsibility. You have to determine firstly, if you can pay the down payment, and secondly, if you have a stable enough career to be able to settle the monthly loan repayments.
4) Are you in a rush?
It’s never a good idea to purchase a house in a rush as you need to slowly consider your options. Time is also needed to process legal documents and loans to be approved so make sure you’re not making an emotional decision but a logical and practical one.
5) Can you afford the house now?
Don’t buy a house based on what you can earn or will earn in the future. Make budgets with what you are earning now as that is more realistic
6) Are you budgeting realistically?
Remember that your housing mortgage and down-payments must not bankrupt you and you should still leave some of your earnings aside for emergency savings or retirement funds and such. Remember also that home buying has many hidden costs.
7) Can I afford house maintenance?
Keep in mind that buying a house isn’t a one off process and you will have to be able to do repairs, pay taxes, pay maintenance fees and others after you own the place.
8) What are the current issues on house ownership?
Is the market healthy or slowing down? These are things to keep tab of as it will influence the future value of the property you buy.