The period right after graduation is an exciting time for many young people, and it is when they will be making many of their major life decisions. You may decide shortly after graduation that you want to purchase a car, start a family, get married, go to university or buy a home. But noneof these are decisions you should take lightly. You may have your heart set on buying a home, but it could be the wrong decision for right then.
It may actually be better to rent for a while and look into purchasing a home at a later date. Making that determination isn’t simple, but there are a few factors youneed to look at before you can decide for yourself.
The primary factor to examine is your financial stability. Gradation often brings a lot of career choices, but not all of them can accommodate a hew house. If you don’t have a stable job lined up that can allow you to make monthly payments on a house, then you need to look into renting instead. It’s perfectly fine to rent for a while as you get on your feet financially and get some money saved up. This can give you time to get a better job, get a better position at your job and work toward a paycheck that will let you afford a home.
Renting gives you the benefit of mobility and improvisation. You can pick up and move somewhere else to pursue a better career opportunity if you are renting. It’s not so easy to do that if you have a home. That period right after graduation is very volatile for some young people. Their life is in a state of flux and they are making many decisions that quickly alter the course of their life. If you are not in a stable position, then you shouldnot be trying to purchase a house.
So who should plan to buy a house right after graduation? That is the kind of decision that should be reserved for people who know where their income is coming from and who have a steady paycheck. Not only that though, but they also need to be able to afford to make their monthly payments on that house without outside help. Many banks offer great deals, such as Clydesdale Bank’s first time buyer mortgages, to help young people get on the property ladder, and there are various government schemes out there which help shoulder some of the financial burden.
If it is going to take loans from friends and selling off valuables to ensure you can afford to make payments each month ona house, then this is not the right time to buy. You have a lot of life ahead of you, and thereis no need to rush into buying a home. That’s a decision you want to take a lot of time to make just so you can be sure you will be happy with it.
Buying a home will give you stability as well, as you don’t have to be at the whims of your landlord, but it can also put you in a tough situation financially. You definitely want to take some time to examine your situation and weigh the pros and cons of renting and buying before you make that decision. Keep in mind that the financial decisions you make early on will have repercussions, both good and bad, for the many years to follow.
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