How long you should rent before you buy a house?
Whether you go for a rental house or buying a house, it all depends upon your necessity, your marital status, your family size, your employment status, your earnings in your employment or through business, trends that prevail in the real estate market, funds availability both through your savings and your capacity for mobilising funds through the assets at your disposal and through financial resources and your credit rating etc.
As long as you remain a dependant of your parents and remain unmarried, you may not require a house of your own, because you may be residing with your parents.When you finish your college education and gets employment in a distant place or you set up a business of your own in some other place, you require a house of your own, because it is a basic need of every man.
Being single and unmarried, you may not require a own house or a spacious house.Since you have just started to live independantly, you may hire a rental house.After a few years you get married.Even then, the rental house in which you reside at present is sufficient because your family is very small and compact.
When years roll by you get promotions in your job or your business has expanded considerably, you have one or two children and they are now school going and you enjoy a good credit rating.Your necessity for a reasonably big house with more space with additional rooms arise because you have to allocate separate rooms for your children acknowledging their growth and educational level.You and your wife need privacy and separate rooms as well.Your business or employment status requires a drawing room in your house so as to receive your guests, officials and business people.Going for a spacious house means considerable increase in the rental charges.
Though you can afford to pay a higher rent along with a considerable amount as rental advance, it is not adviceable to go for a rental house.Nor it is wise to do so.Therefore, it is time to go for purchasing a new house according to your requirements and necessity.You should keep your requirements and necessities to the barest minimum according to your capacity and your financial position and they should never exceed your limits.Nor you should try to live ostentatiously.
You should also weigh the consequences or financial implications on your family before purchasing a house.Suppose after mobilising all your funds at your disposal, you can purchase a house only by availing some additional loan in a financial institution, you should see that the monthly instalment you are required to pay towards the housing loan is well beow the monthly rental charges you are required to pay or it should be equivalent to the monthly rental charges.In other words you should see that purchasing a new house should not entail or impose any additional financial or monetary burden upon you.
To put it in simple words, you should always spend well below your capacity and credit limits, when you go for purchasing a new house and you should never overstep your limits at any stage of your life.Then purchasing a new house will be a smooth sailing affair for you.