Is buying your first property among your future plans but you don’t know what is the best time to do so? Today in VillasBroker we’ll talk to you about when is the ideal moment to buy your first property, keep reading to know more!
How To Know If It’s The Ideal Moment To Buy Your First Property?
Buying your first property will maybe be the biggest investment you’ll have to make in your life; and because of this it’s not something that should be taken lightly.
A lot of people think that they have all that it takes to get into the world of property business to find their dream house. Nevertheless, there are many things that should be taken into account to know if it’s the ideal moment to buy your first property.
Age is not something that will keep you from buying a property. But in general there is always an age average in which is more common to buy properties in the majority of countries.
For example, the age limit for you to ask for a bank loan are only given to people ranging from ages 21 to 75 years old. This means that if you’re 18 years old, you won’t be able to obtain one. Making the acquiring of your first property much more difficult.
The most common age range for acquiring your first property is between ages 25 to 35 years old. Because within this age range, people will have found certain financial stability.
Clearly, if a person does not have a certain amount of financial stability, that person won’t be able to buy their first property because … With what money could the person buy it?
Even if the person has saved money during their whole life to be able to buy their first property, they won’t be given a loan if there’s not a steady monetary income available to pay the loan off.
Besides, if by any chance the person is able to buy the property, by not having financial stability, it’s possible that they won’t be able to afford the buildings maintenance and will have to let go of it after some time.
That’s why we recommend that you make sure you have a job that generates a steady monetary income before you think on buying your first property. And make sure it’s a high enough amount so you can also buy other things; pay your debts and still have money available for yourself.
Another very important thing to keep in mind is mortgage loans. They’re not that hard to obtain if you fulfill the requirements, but be very careful.
Even though you’re approved for the loan and buy your property, you must be very sure that you’re able to pay the quotas of said mortgage.
Some people aren’t able to pay the mortgage quotas and their asset ends up seized plus the now present legal problems due to not paying them.
The quotas for mortgage loans vary depending on how much the initial payment you make when buying your first property. The minimal initial payment for nearly all transactions is 20% of the property’s total cost.
If you agree to pay just the 20%, later they’ll be able to finance the other 80%; or an amount close to that one so you can buy the property. Nevertheless, it’s an amount of money that you’ll later have to pay on a monthly basis; and if you can’t afford it, then you should think about the options you have.
You also have the choice of paying more than an initial 20% so the quotas are more accessible to you; but if you still can’t afford them, it’s best that you don’t get into said business process; it’s a better option to wait until you’re sure that you can make the payments with your income.
Buying your first property can be a very big step to take, so there’s no rush. Make sure that you’re well prepared mentally and financially, so you can start the process of finding your dream home.
Were you wondering if it is the Ideal Moment To Buy Your First Property? We hope this information was very useful to you 🙂