A condo is as great of an investment as it is a financial responsibility. Thus, investing/ in a condo is best done when you are fully capable in terms of financial status, credit record, and decision-making. So, how do you know if you are ready to buy a condo unit for sale in the metro?
Check out these signs and see if they apply to you:
1. You are financially capable
Of course, the first requirement that you have to accomplish before buying a condo is financial capability. Your income has to be able to support your basic needs, condo costs, and your wants as well. At the same time, your sources of income must be stable.
And this doesn’t mean making just enough to pay the monthly amortization; you must be able to pay for other expenses as well, such as taxes, maintenance, and condo fees, among many others.
2. You are financially responsible
Being financially capable and financially responsible is not the same thing. Even if you make a lot of money, buying a condo may be a bad move if you don’t know how to handle your finances responsibly. That said, an unspoken prerequisite to being a condo owner is financial responsibility. You must be able to manage your money well, put aside savings consistently, and practice delayed gratification.
3. You have good credit
One of the first things that lenders look at when you’re applying for a loan is your credit history. If you pay your bills on time, don’t max out your credit cards, and keep your debts low, your credit history will look good in the eyes of a lender. This will help your chances of securing a loan with low-interest rates. On the other hand, if your credit history is not too good or so-so, you may not get approved for a loan. If you do get approved, you might face higher interest rates.
4. You know what you want
One-bedroom or two-bedroom? Low-rise or high-rise? How much space do you need? What location do you prefer? What are your must-haves and nice-to-haves? Before looking for condos with the intent to buy, it’s important to know what you want beforehand. In this way, you can narrow down your choices and avoid being swayed into buying a condo that you don’t really love.
Before you commence your search for the perfect condo, make a list of your needs and wants. Then, decide which items on your list you are willing to compromise.
5. You have more than enough savings
A healthy savings account is one of the most crucial signs that you’re ready to buy a condo. But aside from having enough money for a sizeable downpayment, you also have to have plenty left over for other costs, and most importantly, emergencies. You don’t want to end up not having money for an emergency because you’ve put it all down for your condo.
A condo is more than just a nice place to live in; it’s a commitment and an investment at the same time. That said, before buying a condo, make sure you are financially prepared, financially responsible, and ready to commit.