Having a home as a place to rest and raise children is the dream of many couples. With your own home, this means you no longer need to stay at your parents’ place or rent a house every month.
The concern is that not everyone can buy their own home. When this happens, don’t force yourself to buy what is beyond your ability.
To find out if you can afford to buy a house or not, this time, we will explain 6 signs that indicate that you should not yet have a home.
★ You Assume a lot About Future Income
Do not buy luxury homes and large size just because of the reason you will generate greater income in the future. This kind of thinking is a mindset that is careless and can wreak havoc in the future. Because you will never know the events in the future, and you may not get a salary increase or income that was previously estimated.
The best solution that can be done is to take a conservative approach based on the income you get now. A conservative approach allows you to save more money and can pay off your house slowly.
★ You Cannot Pay a Down Payment of At Least 20%
When you can pay for a larger home down payment, there are some benefits to be had. The advantage is that you don’t need to borrow a lot of money from banks, and the interest rate is much lower.
If at this time you have not been able to pay a DP of 20% of the value of the house, then we strongly recommend reconsidering buying a home now. You can save more money in advance so you can pay for a larger down payment.
Or you can first invest the money into investment instruments that can increase the value of money in the future. EzPlanetOne can be one instrument that can offer a yield rate of up to 18% in a year.
★ House to Be Purchased is Outside The Budget
Your budget aims to set limits on the ability to buy a home whose value is estimated based on the income earned. When you buy a house with a value that exceeds the ability, then this is tantamount to burden yourself.
How to make a home payment budget is quite simple; you only need to calculate the income and expenses that are obtained each month. The thing to be sure of here is that the mortgage payments do not interfere with the monthly needs of the family.
★ Home Installments Exceeds 30% of Total Monthly Earnings
An ideal condition where someone can pay the mortgage, but still be able to live properly is the installment payment does not exceed 30% of the total monthly income. Perform an evaluation immediately, not to the amount of installments that you must pay each month exceeds the ideal limit.
A better condition is when you can pay a mortgage of less than 30% of your total income. Do not make more than 30% of total income, because this will greatly burden your financial capacity and disrupt expenses for other needs.
The rules above, of course, do not apply absolutely to everyone, because those who earn more can take higher installments.
The rule applies to the majority of Indonesian people who work as employees with sufficient income.
If the installments have exceeded the 30% threshold, then it is strongly recommended to consider looking for another house that is much cheaper and does not burden financial conditions.
★ Of The Interest Rates You Get
If you have a high amount of debt and a low credit score, the bank will consider you a risky borrower. That means the interest rate you will get can be higher than the average borrower, and the value of the installments to be paid will also be higher.
When you get conditions like the one above, the solution is to choose a house with a cheaper price so you can get installments that are not too burdensome.