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Acquiring a property is not an easy decision; learn what you must consider.
Buying a house or purchasing your first condo is a common dream. Around the world, men and women desire to have their property to live on, have children, and build a solid heritage. In Mexico, the situation is no different: a survey by Vivanuncios indicates that 94% of Mexicans want to buy a house, even though 45% do not have the conditions to purchase it yet.
The reasons are many: have their own home and build heritage (33%); stop paying rent (19%); find a bigger or more comfortable place to live with family (17%); and take advantage of good financing conditions.
However, it is not easy to know when it is the right time to acquire a new house or apartment or even the best location. There is no correct answer: everyone must evaluate their situation and conditions. So, before deciding, you must analyze financial and personal factors. For example, if you are based in New Mexico and looking for a new home community that offers distinctive living in a convenient location near great amenities, living in Las Cruces is a great option.
If you are not familiar with an area it is important to do an in-depth search to understand the area. You will be surprised how one neighborhood can be quite different from another even though they are close to each other. If you are looking to move to Utah for example, search online and ask “where to live in Utah” and the results can help you do an evaluation of the cities in the state.
Financial factors
Since acquiring a house is one of the most expensive purchases you might ever make, it is fundamental to analyze all the factors involving money, like your financial stability and monthly income, real estate market conditions, and financing opportunities. Working with a broker such as certifiedmortgagebroker.com is highly recommended as they can negotiate the best interest rates on your behalf and ensure the purchase is affordable.
Financial or labor stability
This is possibly the most important financial factor before buying a house. The purchase usually costs hundreds of thousands of pesos, maybe even millions. This fact means that most people will not be able to pay all the money at once and, therefore, will buy it in instalments.
Considering this fact, one of the best moments to buy a house is once you have financial or labor stability. And, if possible, for the next few years. You will probably spend the next year paying instalments every month until you finish paying the house, so it is necessary to have that monthly amount. Otherwise, interest rates are high and can lead to debt.
Money available
Having money saved is also fundamental to the moment you decide to buy a house. It is common for the home buyer to offer a down payment, that is, an amount greater than the future instalments, right at the time of purchase.
So, if you already have an expressive amount of money saved that could be used as a down payment, the moment is possibly appropriate for buying a house. Keep looking for all the villas for sale that fit into your budget.
Also, it is important to have an emergency reserve in case you lose your monthly income. Remember that interest taxes are high, and assuming debt in instalments is not a good idea.
Economic context
Indices such as inflation and interest rates, both banks and the government, are needed to understand the best time to buy a house. Are they changing and increasing frequently? Bad sign. If the country faces a political or economic crisis, waiting and acquiring the property might be safer when things get more promising.
Interesting payment conditions
Government agencies or financial institutions offer good payment conditions, low taxes, interest deadlines, and progressive discounts on instalments over time. It may be the right time to buy a house once you have considered other financial and personal factors.
Personal factors
Individual and personal needs must also be considered to know when to buy a house. These are the main ones:
Intention to have children
Most couples or single parents consider buying a house when planning to have children. The acquisition helps to make life more stable since there is no need to pay rent, and unforeseen events, such as moving from a rented house, are practically null.
In addition, a property you have bought tends to be more comfortable, fulfilling the family’s requirements, and remains an inheritance for the children. So, if it’s part of your plans to raise a family, this may be the time to buy a house.
Stop paying rent
Are you tired of spending your money on rent and would like to direct that monthly amount to instalments? So it is probably a good time to buy a house. Remember to compare the loan and rent instalments and analyze the other variants, such as the possibility of taking on long-term debt.
You may also like: What To Know When You’re Buying a House
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