Owning a house is a lifetime commitment. It requires more than just paying your mortgage on time; it also means making sure you meet regular home maintenance and repairs to make it a comfortable and safe place for your family.
Most people’s future and finances depend on it, especially for a single-parent household. However, a sole caregiver’s income is found to be significantly lower than those with dual-income families. Furthermore, income disparity is still present to this day among genders and marital statuses. For instance, single dads receive significantly higher incomes than their female counterparts.
Therefore, while homeownership is beneficial for most individuals, committing to this long-term investment can be challenging, especially for single parents. However, it doesn’t always have to go that way. Here are some questions you need to ask yourself before applying for homeownership:
Can you carry out recurring bills?
Homeownership is not for everyone, at least until before one settles their finances. For single parents, this may mean weighing in factors that would benefit them more. This ranges from their children’s needs, cash flow, bills, and current situation.
Therefore, meeting financial obligations such as monthly dues may put a significant toll on your finances. On the other hand, although renting may save you from taxes and regular home repairs or maintenance, having a property can help you build equity. This resource is valuable when investing in other properties or renovating your home, yielding higher monetary benefits in return.
While having a stable income can secure you a home loan, you should not settle there. Take time to understand how your financial weather works and factor in possible changes in your family’s expenses. This includes your rent, food allowance, medical, and daily needs.
Does your environment foster growth?
According to studies, the decision that parents make affect their child’s growth and development. Therefore, one key factor to help you decide is to consider how your current setting affects them as a whole. This is specifically true as your children’s needs change with time.
For example, you may want to move closer to their school for faster and more accessible transportation. If your child has special needs and requires a constant trip to the doctor, consider choosing a neighborhood with good health care facilities and a family-friendly community. You may do this by browsing through sites such as manorlakes.com.au or visiting nearby locations.
Raising your kids in a healthy environment can help them develop a good social circle benefiting them in the long run. But, of course, don’t forget yourself along the way—factor in your growth as a whole. Think about how the new place will benefit your career.
It could be a unique job opportunity, a promotion, or an additional income and learning. This is beneficial, especially if you are planning on settling in that place long-term.
Are you ready to make sacrifices?
Owning a home requires most people to apply for loans or save at least 20% of the initial home price for the down payment. Moreover, they would need to have a good credit score to qualify for a mortgage. To do this, you must provide proof of on-time payment, a history of continuous cash flow, and other crucial documents.
Thus, if you are thinking of applying for one, you must ensure that you can make adjustments to meet these requirements. In most cases, these would entail cutting expenses and incurring additional debts. For sole providers, shouldering all of these can be stressful and taxing.
If you think significant changes in your lifestyle are inevitable, consider discussing them with your family members. Explaining and communicating your goals to your children will assist you in reaching your goals quickly. You can start by reducing your expenses ranging from electric bills, food, and other monthly subscription.
For example, although eating out may be more convenient with your busy lifestyle, consider cooking your meals at home. You can also take advantage of this time to pack lunches for you and your kids instead of a cash allowance.
This will save you a few bucks, at the same time, provide them with healthy and nutritious food. Furthermore, switching to a more sustainable energy source can keep you from skyrocketing electric bills. Have a list of your expenses and savings so it’s easier for you to track your cash flow and know where you can cut back without sacrificing your family’s safety and comfort.
Homeownership is much like starting a family or any other major life decision. Although the challenges are inevitable, it is not impossible. Understand each responsibility that comes with it and weigh each factor towards which is beneficial for you.