#1 Defining Your Home Ownership Daydream

Today we will discuss one of the most important aspects when purchasing a home to either live in or to invest in. Defining your Daydream. This may seem obvious but with the prices seemingly ever increasing the lines of what the home ownership Daydream looks like, keeps changing.

In this episode we will explore the 5 most important points around defining what your property goal is and map out clear actionable steps that you might consider when realising your Daydream.

1. How does this fit into my short, medium and long term objectives?

   1. Short - Is defined as next 6 months Medium - 1-3 years Long - beyond 3 years

   2. Problem - Far too often we see first home buyers fall into the trap of wanting their first home to be there forever home. Unfortunately, and as sad is it might be, this is rarely possible for most people. This will largely depend on where you live and where you work.

   3. Questions

      1. What property could I live in for 1-2 years comfortably as a stepping stone?

      2. Is the property I purchase likely to experience capital growth?

      3. Is the property I purchase likely to be easily rented out when I move into my next home?

   4. Action

      1. Create a clear vision board of exactly what you want, write it down

      2. If you are in a relationship, have an honest conversation and get on the same page

      3. You can download our 5 Step Dream Process guide to help you get clear on your goal

2. What can I afford? Price

   1. Problem - you would be surprised at how many people have either no idea what they can afford or have unrealistic expectations on what they are able to buy based on their income and serviceability level. Online calculators are a great tool but pale in comparison to an assessment with a broker where we can understand in greater detail your unique situation.

   2. Questions

      1. What is my total purchasing power?

      2. What repayments can I afford based on my current income?

      3. Do I have enough savings to cover all of the upfront costs?

   3. Action

      1. Begin using online servicing calculators to get an idea of your total borrowing power

      2. Book in a no obligation call with our team and we can give you a precise figure of your borrowing power and the upfront costs required

      3. Setup a clear savings plan with a timeline, regular savings contributions and outline the sacrifices you will make in order to meet your savings goal

3. What commute am I comfortable with? Location -

   1. Problem - The increasing price of housing is driving people further and further from their place of work. As someone who once used to have a regular commute of 2 hours each way on Sydney Public transport, I can speak from experience that reducing the commute as much as possible is fundamental to a good quality of life.

   2. Questions

      1. What sacrifices am I willing to make? Do I want a smaller property closer to work, OR a larger property that requires a long commute?

      2. Can I work remotely and join the tree and sea change movement sweeping across Australia?

      3. If I have to move further away from work, can I negotiate working from home a few days a week?

   3. Action

      1. Stick to your goals, it is tempting to deviate from your short term and long term goals just to buy a bigger house

      2. Consider changing jobs in order to work remotely

      3. Get a guarantee from your employer that working  from home will be approved not just discussed as an option.

4. What property amenities are negotiable? Property

   1. Problem - This is where we see significant friction either between couples or an individual who is indecisive. You need to be very clear on what is a non-negotiable property amenity and a nice to have.

   2. Questions

      1. What are the top 5 non-negotiable items that I must have in a property?

      2. What are the top 5 nice to have items that I would prefer in a property?

      3. Could I renovate the property after purchase to add the items on these lists and improve the overall value of the house?

   3. Action

      1. Verify exactly why you need the items you've listed, for example do you really need 2 bathrooms if this is not your forever home?

      2. Write it down so that when you get caught up in the real estate searches you don't get distracted

5. What type of property can I comfortably live in? 

   1. Problem - For a lot of people buying a freestanding home is becoming more difficult therefore a townhouse, villa, or apartment could be a viable alternative.

   2. Questions

      1. What order of preference do I have when it comes to house, townhouse, villa, apartment or unit?

      2. Which could I absolutely not live in?

      3. Which could I comfortably live in for 1-2 years?

   3. Action

      1. Go to a viewing this weekend of all the different types of properties to get a feel for the space and layout. It is important not to just do desktop research but experience these spaces in real life.

Thanks for listening!