Congratulations on your Permanent Residency! You can now stay in Australia for good and have access to social welfare benefits, the national health care, and higher education loans. Also, you can finally vote and apply for citizenship.

But perhaps the biggest benefit is that you can finally own a house. This is a prime requirement if you really want to settle. No more rents to pay and no more arguing with your landlord over bad plumbing. Just you and your dream house.

Here’s the catch: owning a property isn’t for everybody. Too many people have jumped in the world of home ownership without being financially prepared only to find themselves in debt. So how do you know if you are ready to buy a house? Follow these signs, and if everything is right on your part, then get that beach villa you have always wanted.

You Won’t Be Moving Anytime Soon

If you are an urban nomad whose job involves traveling from one area to another within months, then keep your dream house just a dream for now. Renting is the best fit for you. If you are not planning on moving in the next five years or so, then push through with the ownership.

Getting a home while constantly moving will only place unnecessary expenses on your back. Just imagine paying both the mortgage and rent, and you will dry up your resources sooner than later. Unless you are Bill Gates, do not do this.

You Boast Of A Good Credit Score

Yes. Those years of not giving in and maxing out your credit card because the new iPhone will not buy itself has paid off. By avoiding debt, paying the bills on time, and settling your loans properly, you can build a good credit score. This is essential in determining if you can apply for a mortgage and what the interest rates will be. If you have a low score, chances are you won’t be getting a mortgage, or if you do, higher interest rates apply.

Please be advised, however, that credit score seesaws constantly, so be sure you always check yours on line (you can do it here).

Your Expenses Are Planned, And There’s Nothing Big Up Ahead

Having your wedding in the next few months? Your partner is expecting? Planning to get your degree? You might want to rethink about getting a home. House ownership is all about prioritising and commitment. If the coming months or years’ plans will put house payments on the back burner, don’t do it. You will waste money and will probably cause you to run into more debt.

You Have Separate Savings For Down Payment

One of the most fatal mistakes home buyers make is putting all their savings on the down payment. There will always be additional expenses coming, either the paint job is bad or the plumbing is not up to par (it’s always the plumbing). With all your money on the house payment, you won’t have much left.

Worse case is unforeseen and unwanted expenditures barreling you down: you got fired from the job (see here how you can find out if you will get the boot) or a family member got sick. If you already exhausted your unemployment or emergency fund, you will be in trouble.

And likewise…

You Have Buffer for the Down Payment

If you only saved for the bare minimum of the down payment, then you haven’t saved enough yet. Hidden and unexpected expenses such as title insurance and inspection fees will always be coming and adding up to the final numbers which can be as high as ten percent. Have a buffer and protect yourself from unwanted surprises.

You See A House As It Is: A Liability

If you need a place you can call as your own, then by all means do it. If you are doing so because you are under the impression that a house is an investment that will make you more money, then we have to stop you right there. First, house market price over the course of years fluctuates dramatically, so earning significantly is not a sure thing. Second, even if you earned, the inflation and all the financial stress it brings cancels it. Be sure you buy a house for the right reasons.

You Are Responsible When It Comes To Debt

Not all debts are created equal. Some are being made to lift off a business or expand an enterprise. Others are results of unsettled contracts. And sometimes they are a product of irresponsible finances and living beyond the means. If you belong to the last category, think twice about getting a mortgage. Be sure you have a good plan on dealing with your debt first. Debts are constantly increasing and if you are not consciously aware of where they are coming from, then that’s a red flag. Take a step back and manage your finances.