Gen Z, Consider These Things Before Owning a Home!

Gen Z, born between the mid-1990s and early 2010s, is now entering their productive years and facing many important financial decisions, including home ownership. One of the things they are considering is the right time to buy a house, particularly whether to do so before or after marriage. Whatever your opinion on the matter, what is certain is that your finances should still be the number one factor to prepare before buying a house. So, let's talk about some of the things you should consider as a Gen Z who will soon own their own home.

Things to consider before buying a house

Personal financial condition

Assessing your personal finances is a crucial first step. Make sure you have enough savings for a down payment, notary fees, taxes, and other costs.

Don't forget to also consider monthly costs such as installments, electricity, water, and home maintenance.

Career and income stability

Home ownership is a long-term commitment. It’s ideal to have a stable job with enough income to cover the mortgage installments and other costs. Also evaluate your future earning potential.

Home location and investment value

Ultimately, your personal financial condition and income stability will determine which house location is in your budget. Choose this location wisely within your means.

Consider access to your workplace, public facilities, schools, and the development potential of the area. A strategic location can be a profitable investment in the future.

Personal readiness

Owning a home is not just about finances, but also mental readiness. Being a homeowner means being ready for greater responsibility, from home maintenance to legal and administrative responsibilities. So, make sure you can handle all these things before you decide to buy a house!

Long-term goals

Be careful of falling into the trap of thinking that you have to own a house because you have reached a certain age. Before anything, consider your long-term goals for buying the house in the first place.

Will it be a permanent residence or a short-term investment? Plan carefully according to your needs and future plans.

Take out a mortgage to make buying a house easier

Just because you don’t have enough cash saved up to buy a house, doesn't mean you can't have your dream home. Taking out a mortgage is a solution that can make it easier for Gen Z to own a house in installments.

Here are some of the benefits of taking out a mortgage:

Ease of payment

With a mortgage, you can own a house by paying a relatively smaller down payment and install the rest according to your financial ability.

Fixed or variable interest

Mortgages offers a wide range of interest rates, both fixed and variable. You can choose the one that best suits your situation.

Tax benefits

Mortgage installments can provide tax benefits, where the interest you pay can be deducted from your taxable income, thus reducing your tax burden as well.

Long-term investment

Property prices tend to rise over time. By owning a home through a mortgage, you are investing in an asset that has the potential to increase in value in the future.

Ease of administration

By opting for a mortgage, you will be working with a bank of your choice that usually has a dedicated team to assist you in the administrative process, from property valuation, legalities, to the disbursement process.

Buying a home is a big decision that requires careful consideration, especially for Gen Z who are starting their careers and independent lives. By evaluating your financial condition, career stability and personal readiness, you can make the right decision. Taking out a mortgage can be a solution that eases your path to homeownership, provides flexibility in payments, and various other benefits.