Image courtesy of Ivan Petkanov

Many people like the idea of owning their own home. It can give a feeling of security, it can be cheaper than renting and it can be a great investment. However, it is really important that you time your purchase well or else you may find that it does not pay off well for you.

If you are young and lucky enough to have enough money to pay for a deposit on a home, then it could be worth thinking before buying one. There are obviously many advantages to buying a home, but there are some risks as well. You may change jobs and then move to a different part of the country or likewise meet someone, get married or have children which will influence where you will want to live and what size of home you want. You could sell the property and buy another, but this is expensive and takes time and energy. You may decide to rent this one out and buy another, but this is not as simple as you will have to get a buy to let mortgage which is more expensive and then you will have two mortgages that you are responsible for. If you feel that it is likely that you will move in the near future then it may be best to wait.

Getting older can be a problem though when buying a house. If you are too close to retirement age, then you may have trouble getting a mortgage because the lender may worry that you will not have enough money to pay it back once you retire. So if you want a 25 year mortgage and plan to retire at 70 then you may not be able to get one after the age of 45. This means that you will have limited time to get a home. You also need to consider that if you want to start with a small property and move to larger and larger ones so that you can have more space as well as a larger investment, you may need to extend your mortgage and the term over the years. This will mean that you will need to start early so that you have the time to extend the term like this as it will not be able to be extended over the date that you are due to retire.

The perfect time for a mortgage will depend on each person’s circumstances. It would be ideal to start it once you have settled in a job and an area that you do not plan in moving from. Starting before you have a family can be wise as mortgage payments can be high at first, but as you get increases in salary, it will not be such a high expense comparatively and so once you start to find the repayments easier, you will be able to more easily cope with the extra expense of having children. It can be a difficult decision, but it is one taking a lot of thought over before rushing in.