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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, 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 is the right time to acquire a new house or apartment. There is not a correct answer for everyone: each person has to evaluate their situation and conditions. So, before making your decision, it is necessary to analyze financial and personal factors.
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 that the purchase is affordable for you.
Financial or labor stability
This is possibly the most important financial factor to consider before buying a house. The purchase usually costs hundreds of thousands of pesos, maybe even millions of pesos. This fact means that most people will not be able to pay all the amount of money at once, and, therefore, will buy it in installments.
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 years paying installments 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 an amount of money saved is also fundamental to the moment you decide to buy a house. It is common for the home buyer to have to offer a down payment, that is, an amount greater than the future installments, 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 the interest taxes are high and it is not a good idea to assume debt for the installments.
Economic context
Indices such as inflation and interest rates, both bank and government, are needed to understand the best time to buy a house. Are they changing and increasing frequently? Bad sign. If the country is facing a political or economical crisis, it might be safer to wait and acquire the property when things get more promising.
Interesting payment conditions
Government agencies or financial institutions offer good payment conditions, with low taxes, Interesting deadlines, and progressive discounts on installments 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 also have to be considered to know the right time 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 installments? So it is probably a good time to buy a house. Remember to compare the loan and rent installments and analyze the other variants, such as the possibility of taking on long-term debt.
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