If you’re single and have been wondering how and whether you should seriously consider home ownership, then this article is for you. Becoming a homeowner is an important life step with numerous benefits and we’re here to help you decide if it’s the right fit for your current life circumstances.
Purchasing a home is one of the most significant investments you will make in your lifetime and can be quite a rewarding experience. Here are some of the major advantages of becoming a homeowner:
Owning your own property means that you have a stable place to live and helps reduce your exposure to inflation since mortgage costs are generally fixed versus rental prices which usually increase over time.
ii) Building Equity
Equity is the difference between the property value and the outstanding balanced on your mortgage loan. This means that the more payments you make, the more equity you build. A home purchase, even while single, is an investment in your future. The equity you build can be used to consolidate debt, pay for higher education, finance home renovations and other major expenses.
iii) Building an asset
For a maximum down payment of only 10%, you can acquire a high value asset that continues to appreciate over time.
Can you afford it?
One of the largest challenges facing single persons looking to buy a home is the ability to afford this expense on only one income. We’ve compiled some of the key ways to help reduce this difficulty:
i) Income Maximization
Don’t hesitate to put plans in place to increase your earning potential. This includes pursuing education to better qualify yourself with helpful skillsets, seeking a new job when there are no longer upward growth opportunities, or even turning your passion or hobby into a second job to help increase your net worth.
In addition to increasing your income, it also makes a big difference to reduce your expenses and divert these funds to your savings instead. This often requires taking an honest look at which of your spending habits can be reduced and identifying which items are “wants” versus “needs”. There will be sacrifices involved, but it’s up to you to decide what you’re willing to give up, to achieve your homeownership goal.
iii) Focus your property search
When researching properties, target homes that are smaller in size and require less maintenance. Consider purchasing a starter home or fixer-upper to help reduce the purchase price. Keep in mind that you can expand later on, if the need arises.
We hope we’ve raised some helpful points and we’re happy to discuss further as you consider the home ownership journey. Don’t hesitate to reach out if you have any questions!