Buying a dream home...small steps...big strides
By vanny
@vandana7 (102698)
India
June 1, 2011 10:35am CST
This is an inspired discussion. I was reading another person's desire and realized that most people tend to be either too cautious or too uncompromising.
It was about buying that dream house. Now our dream homes have everything that we ever desired AS OF NOW. And therefore, they are going to be rather expensive. Does it mean we need to continue paying that rent and forget about owning a home?
First step towards owning a home...start early. As early as in late 20's. Rent paid is always a loss. It needs to be saved. That is what has been drilled into me during my stint in a real estate firm anyway.
I am of the opinion that we can start small. The amount that I am willing to pay as rent should be equal to the installment on any home loan. And we should consider purchasing a home only that big. Now that seems so bad...and below standard...doesn't it? Hey, you dont have to agree to this. But this is a way.
I would buy a small house and as time goes by, save on rental increases, which becomes a down payment for the next home along with whatever is the sale consideration. Of course my dream home by that time would need new additions because new things keep on coming in market. But my income level would also climb (hopefully) making us eligible for larger home loan.
The later we buy our dream home, the more contemporary it would be, and it would need fewer repairs during later part of lives, i.e., at retirement.
But I think like this based on Indian conditions. What do you think of my strategy? And is it possible in your part of the world?
2 people like this
9 responses
@shibham (16977)
• India
2 Jun 11
Hi vandie...
having an own home is very nice to enjoy with wonderful feelings. You had to do that earlier, i dont know why you are thinking now...
Perhaps you know about my home as i told here and you were interested to visit. Come to my village and take a part of my land and you will pay when you wish....
Have a nice day.
Have a nice day.1 person likes this
@vandana7 (102698)
• India
2 Jun 11
That is such a sweet offer Shiby..your heart is too big. May god keep you like that forever. But I am a grown up. Because of that I cant cheat. However, someday I will come to your village and experience all that greenery and natural charm.
I so desperately want to get away from this concrete jungle. :)
I already have small house shiby, and it was a dream house but as Rich pointed out, after sometime, it does not remain like dream house. I guess in villages like yours, that danger is not there.
I might just take up the offer ..watch out. 
@vandana7 (102698)
• India
3 Jun 11
I know ..I mean the love and comfort. You too are welcome Rich..my home is also not large, and to be honest it is quite dirty and surrounded by buildings ..but still mylotters are welcome because all mylotters are special, they are the only ones who qualify as human beings. 
@ElicBxn (64171)
• United States
2 Jun 11
I think this is essentially true anywhere in the world, however, in many parts of the world, you have to buy the place outright, so no loans... (I learned this on House Hunters International on HGTV)
I am living in my "dream home", no, its not EVERYTHING I could want in a house, but its paid for and will soon be in my name.
I think I could live in it alone if I were so inclined, but I would have to cut back on things I like, like all my cats... maybe only have 1 or 2 of the beasts...
So, I'll keep the roommates and the cats... and soon have it in my name and what more does anyone really need?
1 person likes this
@vandana7 (102698)
• India
5 Jun 11
It is nice to know that it will soon be yours, and exclusively yours. And I am so glad for you. But I would in some small way continue to earn as far as I could as house needs repairs, and then there would be taxes, etc. I hate being caught on wrong foot. So earning a little more even if it is not really needed is my way.
1 person likes this
@Hatley (163772)
• Garden Grove, California
2 Jun 11
here in sou thern California the rents alone on apartmets are so high most families need two c hecks for rent and all the other livinbg exzpenses. only reall wealthy people like doctors lawyers, those wih big pay checks are buyinghousees,.whenwe ere first married we b ought a hoe for 15 000 dollars now they sell for 200 000 thousand and condors maybe for 100 000. so most of us have had to live in apartments and no the cost of per month on those h omes was not cheap either,.lower middle class people here are called renters.those with o lder homeds a re lucky as they bought them cheap and a re now paid for so they are home free.if they wanted to sell they would get a huge price.we had two hou ses anhd finally sold and lost out had o live in apts.
@vandana7 (102698)
• India
2 Jun 11
Hello ma..yes, prices of real estate really shot up, and have remained stagnant for real long now. This is the time to buy actually because I expect the prices to spurt or gallop for a while once more, i.e., once the economy starts reviving. As of now, the start is going to be slow...first gear. :)
You can come to my place Hatley. Its not a big one. But you are welcome always. Ok?
@rakittera (802)
• Philippines
1 Jun 11
I think you have a very nice strategy. My strategy before was to dream big. I aimed for a big house and everything I wished for. 4 bedrooms, a master bedroom with a walk-in closet and a big master bath... the works. We bought a vacant lot in 2004 and until now, we are not able to build our dream home. Maybe I should have started small like you. So, I think you have a great plan there.
1 person likes this
@jennyze (7027)
• Indonesia
3 Jun 11
Well, it's a good strategy and I really hope you will succeed Vandy. As for me, I did own a little house before, but it was in the outskirt of the town, as that was what I could afford. So, I have to rent an apartment like in the city to be able to commute better. After sometime I decided to sell the house as no one wanted to rend it unless for a small pittance and they neglected to keep the house livable. And the sale of the house could not even got me a down payment for a small house in the city...
So, I resigned on having a house of my own... unless....
So, I resigned on having a house of my own... unless....@vandana7 (102698)
• India
3 Jun 11
Oh dear..may be you would have been better off buying just a lot on the outskirts then. Out here, we can still afford downpayment for any city dwelling if we sell lot on the outskirts. Losing rent every month, that too with annual hike doesnt make sense. And landlords and their families can often be overbearing you know.
@vandana7 (102698)
• India
3 Jun 11
Perhaps rents are not much in your part of the world. Out here, a 3 bedroom apartment would not come for less than 16 to 17 thousands per month. That could cover an installment of approximately 1300000 to 1400000. A single bedroom apartment may cost approximately that. In this scenario, I find it ridiculous that people spend 17 thousands per month on rent rather than try to live in single bedroom apartment for about four years before moving on to larger unit.
@Kalyni2011 (3496)
• India
2 Jun 11
Vandanji
We have 2 homes now in our city on paternal land of hubby, he got both the houses demolished and construction was started one after the other, all the money he got after retirement, the fixed deposits went there, i guess it was well over 30 lakhs, but it is not expentiture , rather kind of investment, one house is given on rent, it fetches 10k per month, we are going for third one..this will be a Dream house, he says..
A rented house is rented house, can never be a home..
Son in Hyderabad is living in rented aparment @12k per months, he is going to buy one on instalments..
Thank you so much for this nice discussion
Namastey. 
^Kalyani^
Namastey.
^Kalyani^
1 person likes this
@mentalward (14690)
• United States
1 Jun 11
I'm not sure it would work in your country but this is what I did to get my dream home:
First, I saved all I could and bought a house that was less-than-desirable. It was a 'fixer-upper' or a 'handiman special', meaning it needed a LOT of work. But, I made sure that the structure was sound and the basement didn't leak when it rained. Once that was established, I bought the house. It took me awhile but I fixed it up and made it look fantastic, then sold it for a profit. I took that profit and put it down on a house closer to what I consider my dream home.
Starting small and working toward what you want is, in my opinion, the best way to go about it. A lot of realtors will get you into a house that has payments that really are too expensive for your income. I've seen this happen too many times.
Buying a better house each time will result in your finally reaching your dream home. Or, plan ahead and buy a smaller home with enough property around it to build onto the house later.
I now have what I would consider my dream home but it took me 55 years to get here. I would have loved having this home 20 or 30 years ago but there was no way I could afford it then. Since there are over 3 acres of land here, I've been planting fruit and nut trees, berry bushes, kiwi and grape vines, whatever will grow in this area. They are now starting to produce enough fruit to cut my grocery bill way down so it's getting even easier to afford living here.
Yep, small steps is the way to go.
@vandana7 (102698)
• India
4 Jun 11
Yeah many people are too optimistic at the outset. It is nice to want something. It keeps us oriented. But it is also nice to be realistic, and then plan our path towards our goal in an intelligent way. That said, some people do manage to succeed without those small steps. They are the lucky ones. For the rest of us, small steps it is. I am so glad you have your dream house at least now. 
