Do you dream of a future with a big mansion? One where you’re not paying 30% of your salary to your landlord every month? Being able to buy a home is a big part of what we aim for but it’s not for everyone. So when will you know to stop renting and buy a home?
Renting an apartment forever is absolutely an option and a damn good one. But still, many Kenyans every year decide to give up the rental life for homeownership. Wondering if you should be one of them? Here are signs you’re ready.
However, this isn’t a checklist, and these things certainly aren’t requirements for your first venture into real estate. But if you can say “yes” to more than a few items on the list, it’s a good indicator that buying might be a solid next step for you.
1. You’re out of debt.
If you have cleared you Helb, school loan or car loan. Or basically any loans that were pending. It might be time to invest in a home.
2. You have an emergency fund saved up.
For those who started saving from an early age then you are lucky. Having enough money leads to stop renting and buy your dream home.
3. You have a down payment saved up.
The minimum for a loan is 3.5%of the purchase price. More than 5 % will get you into a fixed-rate conventional loan (where you pay private mortgage insurance monthly). And if you can manage 20%, you’re in the very best shape to avoid fees altogether.
4. You have good credit.
This means all your debts have been paid on time as well as your account is steady with cash flow.
5. You own a basic set of tools and know-how to make small repairs.
Do you handle most of the repairs by yourself? Additionally, do you have the tools to handle remodels?
6. Your current apartment doesn’t fit your needs.
It reaches a point we need change. This applies to our living spaces. Although the apartment may be spacious enough it doesn’t fulfil all your needs a home will.
7. Buying is a better deal for you where you live.
Kenya Homes agents have great tools in weighing your buying vs. renting options. We encourage you to call us today to help in your decision-making.
8. You love your area and know you’ll stay there for at least 5 years.
Renting a home is sometimes just as costly as buying one. This is if you count the accumulating rent. However, choosing to buy a home comes with benefits like no landlord waiting for you to pay rent.
9. You want this home for the life you have now.
Don’t feel like you have to buy a home for some hypothetical future time when you get married and have kids. Hence, if you are ready to be a homeowner even without a family then you are ready.
