If your dream of owning a home is on your bucket list, you’ve likely searched for property, narrowed your home preferences, and even attended a few open houses. But while you might be mentally ready to buy a home, your financial situation might tell a different story.
You’re not used to following a budget
Buying a home is a huge undertaking that may require you to rethink some of your spending and cut back on certain areas. As such, if you’re not in the habit of sticking to a budget and aren’t really open to the idea, then homeownership could end up being disastrous for you. Once you buy, you’ll have more than your monthly mortgage payment to deal with. You’ll also have to come up with the money for municipality rates and taxes, insurance, maintenance, and repairs.
You already have a lot of debt
Having some level of debt shouldn’t necessarily stop you from getting a mortgage. After all, it’s conceivable that you might, for example, be paying off a car. But if you have a lot of debt relative to your income, you may want to sit tight and work on paying some off before applying for a home loan. Furthermore, too much debt could cause your mortgage application to be denied.
So, there’s a lot to be gained by shedding a couple of credit card balances before moving forward with a home purchase. Interest rates are also set to rise next month by about 75 basis points; this means your current debt will be more expensive to finance. The cost of living is also increasing, putting most households under tremendous financial pressure, so managing your monthly expenses has become even more important.
You have little or no emergency savings
Even if you buy a home in great shape, things are bound to go wrong at some point. And if you don’t have money set aside for emergencies, you might struggle when you’re hit with a home repair. A solid emergency fund with enough money to cover at least three months of living expenses can ensure that even if you lose your job, you’ll also have the means of keeping up with your mortgage payments while seeking new employment.
You are unsure where you want to put down your roots
One might have to move to a new town or country, and a house is not an easy asset to sell. You don’t want to invest in a property if you are unsure where you will settle. Selling a house, especially in the current Namibian market, is not easy; there are more houses on the market than qualified buyers.
There are plenty of good reasons to become a homeowner — tax benefits, stability, and the opportunity to build equity in a place of your own. But if the above factors apply to you, it’s probably the wrong time to apply for a mortgage and take on the responsibility of owning property. Instead, you may want to hold off and work on improving your financial picture so you can approach homeownership from a more stable, confident place.
For enquiries Text,Call or email #yourhomegirl Justina Hamupembe
Cell: +264812726001
Email. justina@chili.com.na
