“How to Know If You’re Ready to Stop Renting and Buy”

Tammy Delwarte
Oct 22
3 min read

1. You’re Financially Stable — and Can Handle More Than Just the Down Payment

Buying a home involves more than just saving for the initial down payment.
You’ll also need to cover:
- Closing costs (typically 2–5% of the purchase price)
- Property taxes and insurance
- Home maintenance and repair costs
💡 Pro tip: A good rule of thumb is to have at least 3–6 months of living expenses saved — even after you buy.
If you’ve built an emergency fund and your income is steady, you’re in a strong position to consider homeownership.

2. You’re Ready to Build Equity Instead of Paying Rent

Every rent payment builds your landlord’s wealth — not yours.
When you buy, each mortgage payment builds equity, which is ownership in your property.
Over time, your home’s value appreciates while your loan balance decreases — that’s how wealth grows through real estate.
💡 Perspective: In many areas, a mortgage payment today can be close to or even lower than rent, especially with rising rental costs.

3. You Plan to Stay Put for at Least 3–5 Years

If you know you’ll stay in the same area for several years, buying becomes much more worthwhile.
That’s because the first few years of a mortgage mostly cover interest — but the longer you stay, the more equity you build.
💡 Rule of thumb: If you plan to move within two years, renting may still make sense. But if you’re settling down, owning becomes the smarter long-term move.

4. You Have Manageable Debt and Good Credit

A strong credit score helps you qualify for better loan terms and lower interest rates.
Before buying, check your debt-to-income ratio (DTI) — lenders prefer it to be under 40%.
If you’ve paid off credit cards or student loans, you’re already taking the right steps.
💡 Tip: If your credit needs improvement, focus on paying bills on time and reducing credit utilization — small improvements can save thousands in interest.

5. You Want Stability and Control Over Your Space

Renting can feel temporary — leases end, landlords raise prices, and changes aren’t always in your control.
Homeownership gives you stability and creative freedom:
- No more unexpected rent hikes.
- You can renovate, paint, or design however you like.
- You have a sense of belonging in your community.
💡 Example: Many first-time homeowners say the biggest benefit isn’t financial — it’s the peace of mind that comes with owning their space.

6. You’re Ready for the Responsibilities of Ownership

Owning a home means handling your own repairs, maintenance, and upkeep.
That can feel like a lot at first — but it also means you’re investing in your own asset, not someone else’s.
💡 Pro tip: Set aside 1–2% of your home’s value per year for maintenance (for example, ₱100,000 per year for a ₱5M home).

7. You’re Thinking About the Future

Homeownership is more than a financial decision — it’s about long-term stability and opportunity.
A home can become:
- A future investment property
- A foundation for your family
- A key piece of your retirement plan
💡 Perspective: Real estate remains one of the most reliable wealth-building tools — the earlier you start, the more time your investment has to grow.

✅ Quick Self-Check: Are You Ready?

Question	Yes	No
Do I have a stable income and emergency savings?	☐	☐
Can I afford the down payment and closing costs?	☐	☐
Do I plan to stay in the area for at least 3–5 years?	☐	☐
Is my credit score healthy and my debt manageable?	☐	☐
Am I ready to handle home maintenance and repairs?	☐	☐
Do I want stability, equity, and a space of my own?	☐	☐

If you answered “yes” to most, you’re likely ready to take the next step toward owning your home.

🏁 Conclusion

There’s never a perfect time to buy — but there’s always a right time for you.If you’ve built financial stability, plan to stay put, and are ready to invest in your future, homeownership can be one of the most rewarding decisions you’ll ever make.

If you’re wondering what’s possible based on your income and goals, I can help you run the numbers, compare rent vs. buy scenarios, and explore homes that fit your lifestyle — so you’ll know for sure when it’s time to make the move from renter to homeowner.