Buying your first flat is probably one of the biggest and grandest milestones you will ever experience in your entire life. After years of saving and investing, you can finally purchase and acquire a place that you can call your very own.
However, this is not to say that all of the reasons out there for buying a home are practical as well as appropriate. In fact, there is an old adage as regards home buying that goes, “That house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy today”. Though this maxim probably meant well, my guess is as good as yours is that it was adroitly devised by cunning real estate agents who are looking to make a quick sale. After all, a close inspection of the quote would apparently tell you it is meant to serve those who are selling better than those who are buying.
If your decision to buy a new flat or condo is motivated by a spur of the moment decision, then chances are; you are just wasting your hard-earned money. Spur of the moment decisions or aspiring to own a condo hastily just so no one else can acquire it before you do are just two of the many erroneous reasons for buying a condo and below is a list of more. Take a brief gander at them and do a self-introspection if your reasons for buying a condo are truly practical or whimsical. If the latter is true, it is best you save your money and invest it somewhere else more worthwhile.
1.) YOU NEED A FAST INVESTMENT
You want to earn and you want to do it immediately. Suddenly, listings such as an affordable condo in Bacolod or affordable condo in Mandaluyong look very enticing to you as these may seem like untapped pools for pecuniary potential which would serve your wallet well. Hold that thought—yes, buying real estate property can be a good investment. But there is no guarantee that it would pay off and buying a condo would certainly not assure you of a “fast” investment. Investment in real estate is largely dependent upon the housing market, which, unfortunately, is erratic and beyond your control. So, unless you are a pundit in guessing the house market state or are a professional real estate investor, buy a home because you want to not because you think you could turn it into an investment pool.
2.) YOUR FRIENDS ALL HAVE CONDOMINIUMS
“Hey, I heard Cindy just moved into her first Condo last month. I think we should buy our very own too!” Though the sentiment reeks of enthusiasm, the same cannot be said about the state of your finances if you are buying a condo as a result of peer pressure. Obviously, you feel left out as your friends are all buying condominium units and you are not. And here we are thinking that peer pressure is virtually non-existent in the adult world. The thing is, just because they are buying does not mean so should you. If your basics are all you need and you have adequately met them in your current house, do not do yourself a disfavor by hurting your finances in buying a condo you certainly do not need.
3.) NOW IS THE PERFECT MARKET
Sure, you have consulted a realtor who gave you his expert advice that now is the best time to buy and that interest rates are at an all-time low. Seeing as this is the case, you are antsy in buying your very own condo as you would most probably get a good value. However, it is definitely better if you studied the market before buying as it would serve your interests better if you understood the logistics and the mechanics that goes into it. Additionally, you can form your own advice before seeking supplemental ones from experts. However, if you are buying solely on the basis that there is a good market then you may be rushing into a decision you would probably regret soon.
4.) YOU ARE GETTING OLDER
A few years have gone by and suddenly, you have felt lumped together in the “older” spectrum of today’s generation. In order to rightfully claim your title as an “adult”, you feel like there is an incessant pressure to own property in order to feel like you are one. This could not be farther from the truth because, in reality, there is no rite of passage such as buying real estate property that one would need to undertake before being a “real” adult. It may have slipped your notice, but there are a lot of successful adults who rent and if it is best for you, then do the same. Do not hurt your pockets trying to prove to yourself and to anyone that you are a “real” adult.