So, you’ve finally finished getting your bachelor’s degree from the college or university of your choice. You are ready to venture out into the adult world and take care of your own finances. You thought about your dreams of getting your own house after graduation, along with a great paying job, and hopefully settle down in a few years’ time. Now that you’ve finally graduated, you are thinking about finally fulfilling that dream.
Unfortunately, getting your own house isn’t that easy. You have to think about how you’ll get the money, if you can get some at all, or if you can afford to get a home loan, which is highly unlikely. Unless you are born from a rich family who could afford to give you money for a house, you’re out of luck. But still, you can dream, right?
Here are several things that you have to consider before thinking about investing in real estate:
If you can afford it, or at least get a loan for it. Unless you are born in the aforementioned rich family, you have to consider where you’ll get the money to buy the house with. As you just graduated, it is highly unlikely that you have the savings to afford something as expensive as a house. Your next best bet it to get a home loan, which is just as unlikely as the former as you haven’t built a good credit just yet. Besides, you still have your student loan to think about, and if you do get a home loan, it is likely that you would be able to pay it off without paying massive interest.
If you really need it. Come on, you just graduated. Unless you already have started a family and you need to get your own place, buying a house is not ideal. If you want to feel independent, you can just rent a place as there are many of them available nowadays, such as McGrath rental properties. Renting a place will do until you could afford your own house as it gives you the privacy, with a much more affordable price tag.
If the property market trend is favorable. Let’s say that you do have the money to buy a house. Is the market value trend of money favorable? If the property market collapses, you would lose a lot of money. If the market is unpredictable, then investing in a house is too risky. Despite the widely known fact that property always appreciate in value, it is still possible for the market to crash. But if you are sure that the property would rise in value, then go for it. Learning about investment as early as possible could have its own benefit anyways.
Just because you’re ready to venture on your own doesn’t mean you should go full force and get a home even though your finances wouldn’t allow you to do so. So better assess you capacity first before you decide on buying your first home.