A Step by Step Guide to buying your dream house31st January 2022
Buying a home can be an intimidating task that’s filled with a lot of traps. If you’re looking to buy a property, prepare yourself with our step-by-step guide.
Many of us aspire to the great "Australian Dream" of owning our own home. Buying a home is a big financial decision. It may be one of the most significant financial decisions you make.
It is also an emotional decision as a home represents more than just a place to live. It holds sentimental and emotional value as it's where we spend time with friends, raise a family, enjoy holidays and make memories.
The decision to buy a home requires balancing the head (aka logic) and the heart (aka emotions).
With this in mind, there are three steps on the journey to homeownership. These are:
- Visioning your dream home,
- Planning the purchase of your dream home; and
- Taking action to make it happen.
Visioning your Dream Home.
Visioning your home is a heart-centered process, and it's where you get to dream big and discover what it is that you truly value and desire in your dream home.
Start by making a list of all the must-have features you want your dream home to have. You might consider different locations, styles of home (apartment vs. townhouse or house, new build to a fixer-upper), as well as any "must-have" features.
It can pay to spend time researching and visiting locations, browsing real estate apps, and exploring design boards like Pinterest, Houzz, and other sites.
If you're a visual person, you might also wish to create a vision board to clarify the style and aesthetics of your dream home.
Planning the Purchase
A goal without a plan is just a wish. Now that you've created your vision, the next step is to get clear on the numbers, make a plan, and create a strategy to make it happen.
This practical step requires you to set a goal in terms of the time frame and establish the amount you'll need in savings and finance.
If you haven't already, it is a good strategy to set up a separate savings account for your home deposit, and get into the habit of regularly contributing to it.
Create a budget for the property purchase and include all the associated acquisition costs. Don't forget to include conveyancing, inspection, legal fees, transfer fees, State taxes, insurance, required renovation costs, moving costs, furnishings, and other items. These costs can vary significantly depending on the age and condition of the home.
Depending on your budget, you may have to compromise on some of the features that you listed in your visioning exercise. If this is the case, then go through your list of features and see if you can prioritize what you feel is the most important and what you could compromise on..
Once you have an idea of how much it will cost you, the next step involves securing the money to purchase it. A mortgage broker, bank, or lender can help guide you in this process. They will help establish your borrowing capacity and give you an idea of how much you can comfortably afford to spend.
Consider applying for pre-approved finance before you start looking or negotiating to purchase a property.
You’ll also need to find a solicitor (or conveyancer) you can use to facilitate the transfer of ownership and legal process.
The buying process is often a roller coaster ride, particularly in a competitive market. But it doesn't have to be stressful. The preparation and planning step can make the buying process smoother and more enjoyable.
Once you have your budget and finance options prepared, you can turn your attention to taking action! Helpful tips can include: setting regular notifications of new listings in real estate apps, actively attending open homes and speaking with and building relationships with agents.
Finding a home that ticks all your boxes might take time and even require some level of compromise. If you're looking for a dream home, you're going to need patience as it's important not to rush a decision. A good tip can be to regularly check back in with your list of needs/wants and your budget to make sure you're on track to getting what you truly want and can afford.
The Team at Blossom wishes you luck finding and securing your dream home!
Did you know?
The Savings Goals feature within the Blossom app is a great way to help you save for your dream home. You can set your custom savings goal, automate your regular savings amount and watch your savings blossom as you work towards achieving this goal.