Preparing to buy a home is like preparing for a final exam and completing a course

Preparing to buy a home is like preparing for a final exam and completing a course

It is interesting to observe the time and participation needed to pass a 12-week course of study costing from $1000 -$3000 including exams and assignments. Yet when it comes to buying a home, nearly the biggest financial decision of a lifetime, people are reticent to ‘enrol’ and pay for education and information. It is important to build the steps suitable to them and to study with guidance for an understanding of:

  1. What level of home finance they would qualify under option a or option b or other?
  2. What criteria the lending institution is likely to use in a loan assessment?
  3. What tax benefits are available to them?
  4. How can they take advantage of the different tax laws to maximise their position?
  5. What long term considerations should be investigated when purchasing a home
  6. Have you prioritised what you wish to spend to establish your chosen lifestyle?
  7. Are you prepared to put in the time to find a match between your finance capabilities and your chosen property?
  8. Are you prepared to make some sacrifices in the short term for the long-term choice and benefit of a home?
  9. When is the best time to buy a home?
  10. Are you prepared to spend as much time and money preparing to buy a home as you would one course of study or more?
  11. What kind of material do you prefer for a home?
  12. Do you wish to be near public transport?
  13. Are schools a consideration in your choice of a house to become a home?

Preparing to pass an exam after spending weeks studying a particular course should not come the night or days before the exam. This is often referred to as ‘cramming’. So why would you do the study and preparation to buy a home at the last minute before an auction or the inspection of a home for sale, sign the contract for settlement in 30,60 or 90 days?

Why would you NOT spend weeks and months preparing in advance for one of the biggest financial decisions or purchase of your lifetime?

The fear of the big financial decision can be abated with a proper curriculum of advice, study, research, property inspection records and lifestyle and personal prioritising. A decision should be based on a diversification of uses and potential renovation changes. When the groundwork has been done and the buyer has gained an understanding of the ‘ground rules’ fear and nervousness is reduced. This is no different when going into an exam. If you have done your homework and organised study as preparation, fear and nervousness is reduced.

Profit and future capital gain on a property are often made at the time of purchase not on the sale!