SOME say there is never a right time to buy a house, or rather anytime is a good time to purchase property.

But when house prices are rising, everything seems to be way above your budget. And when the housing market is softening due to economic reasons, you are unsure about buying a house during times of uncertainty.

When it comes to one of the biggest purchases of your life, it still pays to have a proper financial plan and a clear goal to avoid being saddled with a huge loan that you cannot settle.

While most young people still aspire towards home ownership, they should be aware of circumstances that could make purchasing house inadvisable – at least for the time being.

Be mentally prepared

Most young Malaysians would want a place of their own before tying the knot, hence putting pressure on those considering marriage.

In some instances, young people rush into buying a home just before getting married. This may pose an unnecessary burden for newly-weds.

Building a life with your loved one is a long and gradual process. If you are not prepared for home ownership, you could always start by making plans rather than simply jumping on the bandwagon.

Check your finances

The term “Moonlight Clan” has been used to describe young people who live from pay cheque to pay cheque. While it is best to remedy this situation as soon as possible, unstable finances and lack of a steady career among the young are all signs of the times.

To determine if you have sufficient financial resources to buy a house, make sure you have a steady income and that one-third of it covers your monthly loan obligation.

Property comes with responsibilities. If you are not up to the task, your house may end up being auctioned.

Haste makes waste

In this case, the haste to buy a house may result in a waste of opportunity for you to find a more suitable home.

If you are in too much of a hurry to buy a house, you could end up making a wrong choice in terms of the house type, location or budget.

Although house prices are on an upward trend, it is better to be patient when house hunting rather than diving into the market.

Be flexible

Renting a place is usually a commitment of 12 to 24 months, which is a shorter period compared to a housing mortgage of 20 years or more.

Renting offers more flexibility and is a suitable option for those who enjoy a free and easy life who want the option of switching localities.

Starting a business

If you are full of entrepreneurial spirit or in the midst of starting your own business, you need a more flexible cash flow and financial obligations.

Renting a place allows you to divert a portion of your income to paying living expenses or covering the operating cost of a business.

This article was first published in Chinese in Property Trends e-mag. To celebrate the upcoming two-year anniversary of Property Trends, StarProperty.my is holding a movie ticket contest.