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4 Factors to Consider When Buying Your Dream Home

January 11, 2022

Buying your dream home is one of the most important decisions you'll ever have to make. It's also likely to be the most expensive purchase of your life. That’s why you'll need to research, plan and exercise patience if your purchase is to be successful. Regardless of the type of home you seek, you’ll want one that meets your specific needs. Your dream house should be one that your family will be happy to occupy for the long term. You shouldn’t hesitate to be picky until you find the perfect dream home. Although everyone’s taste differs, certain factors are more or less constant. Keeping these in mind will make it easier for you to narrow down your search. They’ll also significantly reduce the hassle associated with locating your perfect home. There are many factors you should examine, but we’ll go through 4 of the most important. These include:
  • The qualities of the home you desire
  • The cost of purchasing your dream house
  • The financial assistance available to you
  • The dream house’s impact on your present and future financial status

Table of Contents

1: The Type of Home You Want to Buy

The Size of the House What Do You Want Your Exterior to Look Like? Your Ideal Yard

2: The Cost of Buying Your Dream House

Down Payment Mortgage Rates Consistent Income

3: What Kind of Assistance is Available to You

Grants for First Time Owners Get a No Deposit Loan The Family Home Guarantee

4: The Purchase's Impact on Both Your Current Financial Life and Financial Future Money Pit.

You'll Require a More Significant Emergency Fund Your Ongoing Expenses Will Increase You'll be Eligible for More Affordable Borrowing Options

Begin By Getting Into the Loop Frequently Asked Questions

What are secret properties? What’s the cost of using Listing Loop’s services? Are off-market properties really on sale?

1: The Type of Home You Want to Buy

Knowing the home you want is one thing. Finding the house is a different thing altogether. Finding your desired home can be a complicated process since you may not see it on property listings. Did you know that you can actually find a home before it’s listed? Listing Loop is a marketplace for off-market properties where agents list their properties first to provide you with a headstart in your property search. You have to know what you’re looking for first. By the time you decide to purchase a home, you’ll likely have a rough idea of what you want. Purchasing a home can be a very emotional process and if you let your emotions control your decisions, you may make multiple mistakes. There are various factors to consider.

The Size of the House

The size of your dream house largely depends on your personal preferences and needs. Even as you determine your preference, always keep your goals in mind. Your supreme objective is to invest your money in a home that you love. It should also be a home where the cost falls within your budget. It should represent your short- and long-term interests. Your preference will also depend on the number of people who’ll live with you in the home. If you have a large family, you'll probably prefer a big home. You'll probably also want a house with a large living room and extra bedrooms and bathrooms. If you live alone, on the other hand, a smaller house makes perfect sense. Looking at the advantages and disadvantages of a big or small home can also help you make this choice. A large home means plenty of room for you and your guests. However, a smaller home is cheaper to maintain and keep clean. Sometimes, a larger than average home can negatively impact family cohesion, yet your cosy small house can quickly feel cramped when people visit.

What Do You Want Your Exterior to Look Like?

Even as you scrutinise the outside, it's essential to ensure that your own home has a sturdy exterior. Knowing what you desire can help you identify the home faster. Here’s what to examine while inspecting the exterior.
Section What to look for
Roof Any signs of damage, leakages. An old roof isn’t necessarily bad.
Foundation Cracks, jamming windows and doors are signs of a damaged or sinking foundation.
Cladding Peeling paint, rotting wood and cracked walls.
Left unchanged or unchecked, these damages can cost you dearly later.

Your Ideal Yard

The type of yard you desire in a home also shapes your personal preference. Do you love low-maintenance landscaping, or do you prefer sprawling acreage? You'll also have to consider the type of features you want in your front and back yards. Homes on sale can have all sorts of human-made and natural elements. Pools, water features and outdoor entertaining spaces are a few of these functional and attractive features. Don't forget to find out if you'll have room for modifications to suit your taste.

2: The Cost of Buying Your Dream House

The cost of your dream house is one of those uncomfortable yet necessary issues to ponder. If you don't plan your expenses, your dream home may gradually become a burden. Before you even begin shopping for your dream home, you should know your price range. It's advisable to get pre-approved. Purchasing your dream house will likely involve more than the purchase price. You'll also have to pay for:
  • Mortgage application fees
  • Home inspection fees
  • Home valuation fees
  • Lands office charges
  • Closing costs
  • Government taxes
  • Legal fees
It's a bad idea to purchase a house that will likely leave you in a financial mess. Setting a spending range and sticking to it will ensure you don't strain to buy your home. Your repayments may take 30 or more years to complete. Therefore, you'll need to ensure that you're comfortable with all mortgage-related costs before you commit. What cost factors should you consider?

Deposit

Deposit requirements could quickly become an obstacle to your dream to own a home. Recessions and economic hardships make it challenging to save for the 10% to 20% deposit. Your savings should play a role in dictating your dream home's budget.

Mortgage Rates

Interest and mortgage rates typically change according to the government's monetary policy. Although you may not have any control over these rates, low rates mean less spending. It'll help if you apply for a mortgage when the interest rates are low. You’ll likely be interested in the best mortgage rates in town. An expert can help you compare and settle for the package you’ll be comfortable paying.

Consistent Income

Since mortgages take a long time to settle, you need a consistent income source. Always keep in mind that situations such as employment status may change with time. Your bank will still need you to pay even if you retire or lose your job. To avoid foreclosure, you may need to have a backup financing plan.

3: What Kind of Assistance is Available to You

You'll need plenty of money before you can finally own that dream house. Don't look at your bank account balance and give up. Even if you've only been employed for a few years, you can qualify for financial assistance. Interestingly, some even target first-time homeowners. What are the options? Let's look at a few of the most popular.

Grants for First Time Owners

The New South Wales government now gives a $10,000 grant for eligible applicants. You’re eligible for this loan if:
  • You're aged over 18
  • You apply as an individual and not a trust or company
  • If you're a permanent resident of Australia or a citizen
  • If you or your spouse haven't co-owned or owned a residential property in the country
  • You mustn't have previously received a concession or exemption under the scheme
The government even sweetens the deal by allowing you to apply for a reduction or exemption of transfer taxes.

Apply For a No Deposit Loan

Although many financial institutions require home deposits, some are willing to finance your new home 100%. These financial institutions will likely require that you meet strict conditions. Some of these include:
  • You must have a high credit score
  • You must have a stable income from employment
  • You must have demonstrated a responsible repayment history

The Family Home Guarantee

You’re eligible for this option if you're a single parent with dependents. Under this scheme, you'll begin your homeownership journey with as little as a 2% deposit. The scheme is not restricted to first-time owners. Moreover, the scheme can finance you to build or purchase a home.

4: The Purchase's Impact on Both Your Current Financial Life and Financial Future Money Pit.

Purchasing your dream home—primarily through mortgage or grants—is a long-term project. It’ll likely affect your future in the long term—financially speaking. Here are some of the financial adjustments you'll have to make as a first-time homeowner.

You'll Require a More Significant Emergency Fund

It's always advisable to have an emergency fund for three to six months of your monthly expenses. Loss of employment or an illness in the family can significantly affect your life financially. These savings can help you settle your bills for a few months as you generate a financial recovery plan. Once you own a home, you'll have more to worry about. You'll need an emergency fund that can also cover unexpected house expenses. For example, your roof may start leaking and require cash for urgent repairs.

Your Ongoing Expenses Will Increase

If your current house is a rental property, your primary concern is paying rent. You can always call the landlord to report any problems in the house that need repairs or replacements. It’s their responsibility to cover these expenses. Once you’re a homeowner, your lifestyle and expenses will undergo an enormous change. You may have to adjust your spending to accommodate these home improvement and maintenance expenses.

You'll be Eligible for More Affordable Borrowing Options

It's common to find yourself in a position where you need a loan. Financial institutions offer various types—both secured and unsecured. Generally, unsecured loans attract higher interest rates than secured ones. As a homeowner, you can use your dream home as equity for low-interest loans. The bank may also be willing to provide you with flexible repayment plans. Buying that dream home is one of the most satisfying life goals. However, it has many consequences, both positive and negative. You can significantly reduce the negative impacts by making informed decisions.

Begin By Getting Into the Loop

These four factors will help you know when a house you're viewing is right for you. However, locating that home can be a little more complex than you'd anticipated. How? The homes you find on property listing websites are snapped up fast by competitive buyers. The number of property listings available however will improve gradually. CoreLogic estimates that the housing market recorded a 7.9% increase in property listings compared to the previous five-year averages. Listing Loop hopes to provide a solution to this problem by supporting buyers and real estate agents. Knowledge about secret properties will give you a promising headstart towards locating your dream home. This will help you grab your dream home before anyone else. Don't let someone else get your dream house before you. Download and install the Listing Loop app today to get started.

Frequently Asked Questions

Do you have more questions? Here are the most commonly asked:

What are secret properties?

Secret properties are houses that are for sale but they may be listed off-market meaning they are not advertised and may not appear on mainstream real estate websites.

What’s the cost of using Listing Loop’s services?

It’s free for property buyers to use Listing Loop's services.

Are off-market properties really for sale?

Yes, they are. They are properties for sale that may not be advertised. Listing Loop brings off-market properties for sale from real estate agents Australia-wide together in the one place. Simply register for free, specify what you're looking for and then allow Listing Loop to match you to the most suitable properties in the Loop.


Photo by Ralph (Ravi) Kayden / CC BY

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