Every person dreams of having their own home. Not only is it an excellent life goal that gives families shelter but it’s also an investment, which grows its value over time.
However, building a home is not something to be taken lightly. It involves a series of physical, financial and legal procedures that only professionals, like those at Falzon Legal, thoroughly know.
So the question is: how do you know if you’re really ready to build your dream home?
You’ve Outgrown Your Residence
At some point in life, a person’s housing needs will change as their lifestyle does. There are various reasons that contribute to this, such as:
- Having children or ageing parents
- Rising maintenance costs for older homes
- Outdated house designs and features
The current place you’re living at right now maybe your dream home but if it no longer caters to you or your family’s housing needs, then it’s time to move on.
You’re Tired Of Wasting Money on Rent
Truth bomb: most landlords have taken out a mortgage to pay for their rental properties. And do you know who’s paying that mortgage? YOU.
If you’re one of those people who are over with renting and now wish to build their own wealth and not their landlord’s, this is the sign. Building a home also means you have equity to build as you pay off a mortgage. You can borrow and use this equity later on to pay for other investments, such as a new car or a business.
You’re Financially Ready
Let’s say you’re physically, mentally and emotionally ready to build your dream home. Now ask yourself: “Are my finances ready for it, too?”
First of all, erecting a home from the grounds up means you have enough money for a down payment. And yes, there are properties out there that you can get access to with a mortgage from a 5% down payment but it’s advisable to put down at least 20%. Keep in mind that paying more cash upfront is better as you get better interest rates, which demand more affordable payments over the life of your loan.
You should also consider your anticipated housing costs per month. This list should include all home-related expenses, such as:
- Mortgage payment
- Home insurance premium
- Maintenance costs
The total figure should not go beyond 30% of your pre-tax income.
You’ve Got Land
Perhaps the most important factor to take into consideration when building a home is whether you’ve already secured a piece of land.
If you haven’t yet, make sure to consider a parcel of land situated in an ideal location. It’s preferable if it’s near schools, business districts, green spaces, and commercial areas.
The shape of your lot dictates the layout and design of the home you’re about to build, so it’s also important to pick the best one possible.
You’re Ready to Settle in One Place
Renting requires you to sign a lease for only a specific period of time, which allows you to move elsewhere when the contract lapses if you wish. Building your own property, on the other hand, won’t give you the same kind of flexibility.
If you’re looking to build good equity in your home, then it’s best to live in it for at least 5-10 years. This means that you have to commit to staying in the same place for a longer period of time. As such, it’s important to choose a neighbourhood where you and your family can thrive and be happy.
Should you find yourself ticking off most of these indicators, don’t forget to seek legal help from trusted professionals, such as Falzon Legal. They are experts in property law, which can help you build your dream home and secure your future.