Everyone, of course, wants to buy a dream home. However, the dream home wasn’t a thing that can be easily owned in a blink of an eye. In addition to the difficulty of finding a home with the specifications you are dreaming; the price of the dream home usually isn’t cheap. No wonder buys or build a dream home requires careful consideration.
Even though you’ve found a dream home that fits in specs and budget, doesn’t mean this time is the most opportune moment to buy it. Don’t be regretful later day, let’s look up reviews about the considerations to have a dream home and find the most appropriate time to have it!
The most crucial factors to ensure that this time is the right time to have your dream home is to look at the condition of your finances. This is what do you need to pay attention to ensure that the condition of your finances is ready to have a dream home:
1. Able to Meet 20% of the Price
For the millennials, has a dream home can be realized through the installments or credit. But, don’t take it if you can’t afford the down payment at least 20% of the total price.
Nowadays many home loans company provide low down payment starting from 5% but don’t let yourself stuck with it. Paying small down payment means that you have to pay bigger amount of installments. Of course, this would be very burdensome. So, if you can’t afford the 20% of your dream home down payment, maybe you have to be a little more patient.
2. Your Monthly Income is Enough to Pay the installments and for saving.
After paying the down payment, now you must pay off the monthly installments. It means you absolutely must have a greater monthly income than the amount you have to pay for. But, just “larger” is not enough!
Make sure your monthly income is enough to pay your daily needs and also savings after deducting the cost of installments. If you already have the monthly income that can meet the three requirements, that means you are ready to buy your dream home.
3. Currently doesn’t have to pay another installment.
At the time you decide to take an installment for a dream home, just the same you’re in debt to the Bank or Developer company. Of course, it will felt heavy if you are on another installment or obligations that have not paid off. Anyway, this will be a consideration of the Bank or Developer in determining whether you deserve or not.
If you feel safe because you have some non-cash assets, you still have to check the liquidity of the asset first. Because not all asset can be turned into cash instantly, so you won’t depend on this kind of assets anytime you have problems with the installment. No matter it’s a luxury home or just a minimalist home.
This is the financial terms you need to consider before deciding to have a dream home. If one or more aspect can’t be meet, maybe this time isn’t the right time to have it.
4. Market conditions and Living Environment.
House as a property has the value of the investment. Although the reason you buy a dream home wasn’t a form of investment, it doesn’t mean you should ignore the market analysis. With market analysis, you not only able to determine the right time to have a dream house, but also avoid the profit losses!
So, you need to observe the market conditions before having a dream home.
5. Observe the local purchasing power
Before deciding to buy a dream home in an area, it’s good that you observe the conditions of purchasing power in that area. If it takes a long time to sell a house, e.g., more than six months or never sold, there is a possibility if the price of the home will be low.
Otherwise the area with a lot of enthusiasts, the price will continuously be rising. Impose to buy a dream home in this area means that you are willing to pay more for homes that may have the same value as another cheaper house.
If you insist on having a dream home in the area, wait until the price more stable to make sure if you get the best price.
6. Installment interest rate
The value of the investment property also influences the magnitude of the interest rate. Each region possibly has a different interest level. So, it’s good if you collect some comparisons first to avoid purchasing a dream home with a very high interest rate.
Bonus: 10 beautiful dream home photos