Finding a dream home,

are you prepared to buy it?

For many home buyers owning a home gives them a sense of pride and liberty. But finding a house at the right location is not always easy. In fact often finding that dream home is a matter of good luck. Opportunities have one thing in common you can only take them if you are prepared.

Are you prepared?

There is no doubt about it—buying a home is an emotional thing like falling in love with something. Geoffrey Chaucer said—”Love is blind”, a common saying. That is why being prepared might help you to avoid costly experience. I would prepare a check list before speaking to anybody like real estate agents etc and consider the following below;

Finance and budget

The easiest way to estimate your buying capacity is to compare the family incoming with all your outgoings. That begins with recording all spendings over at least 6 or better 12 months. When you reduce the family income with all your outgoings, the amount is your cash-flow or also called disposable income. The bank needs your monthly outgoings for calculating your loan service ability. The service ability restricts home buyer’s mortgage.

Defining “must have features” of the future home

Considering your lifestyle by working out the “must have features” you want to spend money on or features to save expenses on long-term. Think about energy efficiency or land to use for a vegetable garden. That enables you to cost savings. But also easy access for repair and maintenance is worth thinking. If you live in a multi-storey home and you need to hire a scaffold for simple repairs that can add huge additional costs for you as home owner.

Rainy days fund

Getting the support of partner and family is as important as setting up a savings account for rainy days. Good practice is to contribute all extra income and cash savings from good deals, weekend specials etc into your rainy days fund. In this way you have cash on hand for surviving catastrophes. You will be amazed how quickly you cumulate a decent amount of Dollars if you stick to your buying rules and develop spare time activities. We talked about changing attitude. Wouldn’t it be nice when your hobbies pay for these enjoyments? Maybe doing some handcrafts is something for you.

If you do your homework as home buyer and treat your home as investment that will enable you achieving wealth and success. You will grow like a fruit tree by using technology, home improvements and resources like land. And one day matured fruits fall off the tree.

These fruits are called “capital gain”, “enjoyment and lifestyle” and a freehold property for retirement. Take opportunities to spot your dream home and preparations will make it or break it. And I will attach in one of the next articles a “Home Buyer’s Checklist”. Good luck.

Klauster

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Finding a dream home, have you done your home work? Are you prepared to buy a house in terms of finance and budget, must have features and loan service ability?

Home Owner’s Blog