Tag Archive | "buying property"

Is There Really Such A Thing As A Dream Home?


Ah, that fabled ‘dream home.’ So many of us want to live in one, but so very few of us do. 

Why? Well, perhaps its because we are a fickle bunch of people, always imagining the grass is greener is on the other side of the fence (or the neighbourhood). We’re never happy with what we have, and continue to long for more. 

Or perhaps its because we don’t have the finances to afford a dream home. We look adoringly at summer cottages and luxury apartments online, but decide to buy something second-best instead because we think we can’t afford anything else. 

And even if we do get the opportunity to move into a ‘dream home,’ we might still feel unhappy. The bills might be higher than we would like. The neighbours could be hellish. And as our families grow, we might resent the lack of space at our disposal. In short, we feel as if we are living in a proverbial nightmare rather than a dream.

So, is there really such a thing as a dream home? Or is it a fabled myth? 

Well, we think the answer is yes, but you need to take the following into consideration.

#1: Remember that perfection is hard to achieve

If you’re looking to move into the perfect home, then you are going to be looking for a long time. There will always be something to tarnish the dream image, be it a bathroom that is a little too small, a neighbour who is both noisy and nosey, or a garden that is regularly upended by moles and other wildlife. If you’re looking to move into the ‘dream home’ then, you might need to alter your expectations a little and remove the idea of perfection from your mind. As long as most of your dream home checklist has been achieved, you might find joy and pleasure in your home, despite the imperfections. In short then, be happy with what you have and not what you haven’t!

#2: Remember that any home can become a dream home

You don’t have to move into a dream home right away! If you find something that ticks all of your boxes, then fine. But if you don’t, remember that you can work on your ‘second-best home’ in the months and years to come. So, renovate your bathroom if it’s too small and fit it out with all of the fixtures that you might have longed for at the beginning. Do the same with any other rooms in your home too, perhaps by decorating them in the styles you love. And get on top of any nuisance problems, be they repair jobs, garden intrusions, nosey neighbours, or anything else, and research ways to manage them. By taking active steps to improve your property, you might soon be living in the home of your dreams. 

#3: Remember to curb your enthusiasm

Before buying what looks like a dream home, rein yourself in a little. Figure out your finances to ensure you can afford both the upfront and ongoing costs. Hire a professional to inspect the property you are looking at for any maintenance problems. And ask investigative questions to the seller before agreeing to buy, as you will then have the ability to make an educated decision. By taking such steps, there is less chance of your dream home becoming a nightmare property after you have moved in. 

Is there really such a thing as a dream home? Probably, but take the above into consideration. By doing so, you should have the opportunity to live in a house that ticks most (or perhaps all) of your boxes. 

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Essential Things to Consider When Buying a Block of Land


Buying land can be a great investment. But if you plan to build on it – it’s best to be cautious.

There are lots of considerations you need to think about  – so it’s wise to be aware of them before your search hits the ground. Read the full story

Posted in Business & Finance, Family, MoneyComments (1)

Things You Should Know Before Buying Your Forever Home


Buying your forever home is something that needs careful consideration – it’s called ‘forever’ for a reason! However, many people are currently on the look out for their forever home, and many people are even looking for it earlier than ever before.  Read the full story

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Mortgage Choice Top Tips for property investors


Use the equity from another property

Tapping into your home’s equity, or equity from another property investment, can be a great launching platform for buying an investment property. According to Mortgage Choice’s latest investor survey, 60% of those looking to buy an investment property before mid 2011 plan to access the equity in their home in order to fund all or part of their investment property purchase. How does this work? Say your home is valued at $700,000 and you owe $350,000 on your mortgage, you can use the $350,000 equity in your home to pay for up to 100% of the new property, or if it is more expensive you may be able to borrow more with some lenders.

Pick a loan tailored to your investment strategy

Meeting lending criteria is only half the challenge; another big one is choosing a loan. Think carefully about interest only vs. principal and interest options. Although interest only loans will not reduce the loan amount, they do result in smaller monthly repayments and allow you to make greater contributions to your principal place of residence or to invest in another asset, all the while allowing the investment property to grow in value through capital gains.

Consult a buyers agent/property finder

Seek professional advice about what type of property will maximise your investment. Most investors want property to secure them (as an average over the entire loan term) an annual return on investment that is higher than the costs eg. if net rent is 3% and the interest rate is 7% then it only needs to grow in value at more than 4% to be profitable. Experienced buyers agents know the market better than most and are a valuable resource for advice and for negotiating with property sellers and/or their agents.

Positive vs. negative gearing

Expenses you incur on an investment property are tax deductible. If your loan repayments, fees and other property-related costs exceed your rental income, the net loss can be offset against other income you derive, reducing the amount of tax payable on that income. This is called negative gearing. Or, you may consider positive gearing, where the annual rental income received from the property covers or is higher than the repayments and costs.

Consider all the costs

It is crucial to create a detailed budget outlining your outgoings and earnings. Property investment usually incurs unexpected expenses and it is easy to go over budget on improvements and repairs. Don’t fall into the trap of relying on your property’s income to cover additional costs such as new hot water systems or interest rate rises. Also think about capital gains tax you will have to pay if you decide to sell the property. Be sure to consult your taxation advisor.

Call the customer service centre on 13 MORTGAGE, visit www.mortgagechoice.com.au or www.facebook.com/MortgageChoice or http://twitter.com/MortgageChoice.

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