It’s a singles world out there – as Beyoncé keeps reminding us (in song at least, if not in her own life). And buying a home doesn’t have to be off limits for all the single ladies out there, or indeed the single laddies.
More women than men buy properties solo, and I think it’s a fantastic idea. But it comes with its own challenges, particularly when the global economy is fragile.
Between 2001 and 2008, 11.8 per cent more single consumers became homeowners, according to Statistics Canada, rising to nearly half of the total singles population. The trend may have slowed, but the desire is still there. Homeownership is the goal.
A single person only has one income to support the purchase, adding extra risk should job security become an issue. So it’s even more important to choose the right home, and be prepared.
If your work situation and prospects for the next few years are stable enough, it is worth looking at the housing market with a view to buy. Start small if it’s your first place, leaving you in a safer financial position with more room to trade up if the opportunity arises, or if you later meet someone and need space for two. . .or more.
In my experience, first time single buyers usually have a big wish list their budgets can’t, or shouldn’t support. It’s best to think and act conservatively with your budget initially because you – the first time home buyer – have never owned a property before and may not have a solid plan for the unexpected expenses which will come up. While paying rent, you didn’t have to worry about these unexpected expenses because you had a landlord to call. But now you are your own landlord, so the buck stops with you – and you better have some bucks in the bank to cover the expenses.
Make sure there is room to maneuver in your monthly budget. You don’t want to become a test case for what NOT to do when buying solo. I recommend having at least a 20% cushion within your monthly budget. So after all your essential bills are paid, you have 20% saved for a rainy day or a leaky faucet or a crack in the foundation or….you get the picture.
You might already have breathing space factored into your personal finances while paying rent. If you can switch that rental money across to a mortgage you will be better off in the long run building equity for your future.
Finally, being on your own when you buy a home means there’s nobody else to help with maintenance, yard work, chores and the upkeep. So make sure the size and requirements of the property suit your lifestyle, both in terms of time and handy-girl skills. You don’t want to get swamped under “to do” lists when you’re also trying to make sure the mortgage is paid on time.
As the StatsCan figures show, half of all single consumers own a home, even with just one income. So if you’re single and you want to own property, talk to an agent and see what’s out there within your budget. Don’t let that single freedom in any way imprison you from the dream of buying a home.
- image source – VOISIN/PHANIE/Canopy/Getty Images
