Are you ready to buy?
Monday, October 30th, 2006
Before jumping into a purchase, you need to be sure that you’re ready to take on a commitment like buying a home. Remember, this is something that you’ll be paying for years, and a hasty decision could leave you with a great deal of regret, not to mention the financial loss.
The important elements that you need to be clear about :
- Do you have any large debt - credit cards and the like? These could impact your credit record; plus, the fact that you’ve run up a huge negative balance could hurt you when you’re trying to juggle payments.
- Do you expect to continue in the same place for the next 5 - 10 years? Is your employer likely to move you around, or in case of work problems, can you easily find an alternate job nearby?
- Do you anticipate any changes in family in the near future? This could include having children, or an aged or ailing parent who needs your help.
- Any anticipated large expenses in the near future? More education, a world tour, and the like. Or even, a drop in income - a sabbatical, or if your partner’s planning to stop work, or startup a business.
The watchword here is stability. You don’t hoist sail in a stormy sea. You need to be sure that you can go through the commitment for the near future, for at least 5 - 10 years, without breaking under.
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