Finding your dream home that fits your budget can be challenging. Because it is probably one of the most important financial decisions you will ever make, it is worth putting time and effort into the search. However, if you search for too long, you could end up with ‘buyer’s block’.
‘Buyer’s block’ is a condition where the thought of such a large purchase or such a long-term payment commitment is so overwhelming that you cannot decide to buy any property you view.
Solution
Well-meaning advice from friends, relatives or colleagues is unlikely to help. The best solution is to take a break from house hunting for a week or two. Then, start over again by working out what you can comfortably afford and what you are looking for in a home.
- Work out a budget - be sure to include costs associated with owning a home, such as homeowner insurance and municipal rates or monthly levies.
- Make a list of the features you see as essential.
- List features that you would like but which are not essential.
- Do some research to identify some neighbourhoods in which you would like to live.
- Then, give yourself a deadline for finding the home that is right for you.
Once you have done this, take a second look at the properties you have already viewed and compare them to your new budget and lists of features. You may find you have already seen one or two properties that meet all or most of your requirements.
New search
If you need to restart your search, consider only homes that are within your price range and have all your essential requirements.
See as many of these as possible within the timeframe you have set yourself.
Choose one you like and believe will offer good value for your money.
Sound investment
Although property price increases vary from one year to the next, in the long term, they steadily move upwards. Homeownership is still one of the best ways to create wealth for yourself and your family.
If you buy a home you can afford in the best area possible, it is sure to be a good investment over time.
Writer: Sarah-Jane Meyer
