You Will Still Have To Pay The Piper

Is It The Right Time For You?

We have all heard, at one time or another, that the most secure financial investment is property. Buying a house has always been considered a wise choice when it comes to having something of value. However, is there ever a time when buying a house is not necessarily a good idea? Some may argue with the question saying that having an investment is always a good thing. But, there are times when buying a house may not be in the best interest of all concerned. 

Even though home ownership is one of the best financial investments around, it also has the potential to be a financial drain, which means there are some things to think about before stepping off the edge and into a deal. The magnitude of the commitment is worthy of consideration and an awareness of the risks is good to have beforehand in order to decide if home ownership is right for you at this point in time.

Can You Afford To Wait?

While owning a home is a huge financial commitment, it does yield great rewards. However, the rewards don't come until a few years down the road. Some people have been very successful in buying a selling real estate, but they are the exception rather than the rule. If you are "Joe Normal", then you will likely want to buy a house that you and your family can live in and enjoy rather than flipping and moving on. So then, what are some of the considerations that may constitute reasons to delay buying a home?

Can You Pay The Mortgage?

Well, first of all, it is very important that you are financially capable of handling mortgage payments as well as the variety of repairs and maintenance items that come up regularly for homeowners. Once you sign on for a mortgage, you are expected to have the money every single month to make the mortgage payments and of course, the taxman won't wait either. Lenders are very concerned about their money and they won't let a homeowner slide on his mortgage commitments until the last penny is paid. That means that a homeowner needs to be sure s/he can maintain the mortgage. Of course, nothing is carved in stone and it is possible (and often happens) that a person loses their source of income. Unless something is settled on with the lender, after three missed payments, a lender can begin the foreclosure process in which the homeowner loses the house and all interests in it. On top of losing the house, the balance of the mortgage still has to be paid off. Perhaps one of the worst, if not the worst thing to appear on a credit report is foreclosure-it can wipe out any good credit history an individual ever had. It may be worth thinking about delaying a home purchase until such time as you are fully able to protect your interests in a home by ensuring you are able to fulfill mortgage commitments.

Selling Too Soon Spells Loss

Considering the larger financial picture before buying a home includes recognizing that there is no advantage to having to sell the house too soon. On top of the large financial encumbrance taken on with the purchase of a house, there are also closing costs and real estate commissions that have to be paid as soon as the deal is closed. These one-time outlays of money can be recovered over time through the appreciation of the house and property. However, if you are forced to sell before you can realize any profit in the house, then you end up in a financially poor situation.