The 10 signs that you may not be ready to buy

Buying a property is the “Australian dream” and in our national psyche. However, not every person is quite ready to buy a property.

Here are 10 reasons that may suggest you’re not quite ready yet.

1. You’re not ready financially
   
   If you haven’t got the required deposit yet, or you’re going to be financially stretching yourself to cover repayments, then it might be a sign you shouldn’t be buying quite yet. You might also have other financial goals, such as starting a business, that don’t align with owning a property.
   
   Be honest with yourself about what you can afford and your comfort level associated with debt. When you manage to reach that bracket then you can consider buying. In the meantime, keep saving and learning about real estate – just because you’re not ready today, doesn’t mean you won’t be ready in six months or longer.
   
   Buying a property is a huge financial commitment,and so speaking to a broker or a financial planner could be worthwhile considerations as you get your finances in line.
   
   
2. You’re not ready personally
   
   Perhaps you’re enjoying the flexibility of your lifestyle as a renter, or you have to regularly travel for work – these may suggest to you that owning a home isn’t quite the desired situation for you yet.
   
   On the other hand, if you’re considering an investment property, you need to ask yourself whether you’re personally ready to be a landlord. If the idea of having tenants potentially breaking things in your home, or just making it messy with day to day living, fills you with dread, then you need to reconsider.
   
   
3. The properties you want are out of your skill set
   
   This ties back into our first point about finances, however it’s also about your plans with that property.
   
   If you’re hoping to renovate, but don’t have extra savings on top or any knowledge of renovating – then you might not want to take on this particular burden. You may consider bringing in experts first, however don’t consider DIY-ing a project with little knowledge about it.
   
   Know your limits - don’t head in looking to do a knock-down rebuild with no experience.
   
   
4. The market is in free-fall
   
   Do your research, and don’t ignore the experts. If you’re being warned about collapsing property prices in an area and you don’t have good reason to think they’re wrong – you may want to think twice and set about researching more.
   
   Even a flat market for an investor may cost you in “opportunity cost” elsewhere, so pick wisely, study up on a location and listen to other people who know more than you do.
   
   
5. Insurance is the last thing you want to think about
   
   Home ownership comes with a significant amount of responsibility, particularly if others are implicated by your decision – such as a partner or children. If you are paying the loan, and you’re not interest in income protection should something happen to you, then alarm bells should be ringing.
   
   Insurance on the home, landlord’s insurance if necessary and other policies should be of interest to you. Do not ignore this simple safety net. Similarly, if your job is on shaky ground, then you might want to reconsider taking on another financial commitment.
   
   
6. The market is too hot
   
   While there’s no guarantee waiting will be beneficial for you, it may see fewer bidders at auction and a little less competition on the day. If the market is booming, it might just be time to look elsewhere or take a step back.
   
   Do not be forced into buying because it seems “everyone else is”. As in point two, this is a personal step and you need to buy for the right reasons, not because of market hype.
   
   
7. Renting is a lot cheaper
   
   If you’re looking for a home, but owning is going to be substantially more costly on an equalized week-by-week basis, then you might want to have another think about purchasing. Yes, there are multiple reasons you’d consider buying a home beyond the day to day financials, however it doesn’t stack up for everyone. You might want to read our Renting versus Buying debate.
   
   
8. The building and pest inspection is a shocker
   
   If the rectification work noted on that building and pest inspection works out to be a stack load more money than expected, and the vendor isn’t budging on the price, then you want to steer clear.
   
   Unless you’re getting the property at a steal – in which situation you’d want to be wondering why it’s so cheap – it’s not always worth the aggravation.
   
   
9. A lot of properties are being developed
   
   This point is down to your own research and analysis of an area. However, if you’re looking to buy a standard apartment and a vast number of other apartments are slated for development, it should have you a little concerned about how supply may affect your re-sale value.
   
   You also want to consider if any of your views are being built out, or if congestion will become unbearable. While local development isn’t always a negative, it can be the nail in the coffin for your own property purchase.
   
   
10. You don’t want to cover maintenance
    
    Part of owning a house, and keeping it in good condition for future re-sale, is maintenance.
    
    Whether it’s fixing leaks, paying for things to be re-painted, or just chasing the council round the clock to prune back trees or get neighbours to move their trash – it can be hands on being a home owner. Where renters can call the property manager and ask for a fix that doesn’t always come, home owners will need to proactively do these things themselves.
    
    If paying for maintenance and upkeep doesn’t suit you, it might be that property ownership isn’t for you quite yet.