The path to buying your perfect home

Houses are expensive, there is no news about that. But it’s a significant life milestone in one’s life. It’s important to recognise that owning a traditional single-family or independent house is not the only solution when it comes to housing. We will explore various options and different strategies for people and individuals from many different backgrounds. It is not easy to include people with limited financial resources and those who want to look into non-traditional housing solutions. I want to try to empower everyone to find solutions that fit their budget and their desired lifestyles. Avoiding patronising undertones, I’ll try to point out how being rich is not a mandatory prerequisite for having a comfortable and fulfilling place to live.

Assess your budget

Calculate your monthly income, expenses, bills, school loans, existing debt or debt you’re planning to take in the future. Assess your budget and try to be realistic. How much money and resources can you put towards costs, mortgage, rent, utilities and maintenance. Begin saving for a down payment and other upfront costs associated with buying a home. Consider opening a separate savings account dedicated to this goal.

Do your research

Do your research, first and foremost. Familiarise yourself with the real estate market of your area and the city where you intend to buy a house. Buy magazines, read online, go online or hire an agent to guide you through the trends, property values and market conditions in order to make an informed decision. Learn and research about neighborhoods, schools (if you plan to have kids), amenities, hospitals and any other factor that you’ll need near to you. Having sound knowledge will guide and help you into your house-hunting efforts.

Get pre-approved for a mortgage

Do you have a clear picture of your financial situation and an understanding of the housing market? Sort of? Good enough. It’s time to apply and try to get approved for a mortgage. It’s not an option available for all, you need to have good credit and a stable income. You’ll have to work with the lender to determine the loan amount you (alone or with a partner) might be able to qualify for based on your credit history, income, etc. Holding a pre-approval letter when you show up to the seller’s house will strengthen your negotiating position while helping you set a realistic budget for your house hunt.

Explore affordable housing programs

Non-profits and state organisations might offer various affordable housing programs in your city or district to help and assist low-income individuals and families in buying a house. Programs like these often provide people with support for down payments, low interest mortgages and various types of subsidies. Look up information about these programs on your city website. It might be difficult to get into these programs, especially in bigger and expensive cities such as Milan or Rome.

Rent-to-own and lease purchase

Rent to Own and Lease Purchase, are two alternative ways to approach homeownership that can offer much flexibility to you or any potential buyers. Rent to own typically allows tenants to rent a house or a property having the option to buy it at a fixed price at the end of the lease term. It could be months or years in advance.

This kind of arrangement offers you the chance to live in your “future house” while gradually saving up money to put down the down payment or getting a mortgage.

Lease purchase contracts, on the other hand, commit both the landlord and the buyer (you), to the sale of the property once your contract ends. These options are good opportunities for people who might not be able to commit to a mortgage immediately, but they come with some strict conditions that should be taken into account to be sure you’re not trapping yourself into a faulty contract that doesn’t fit your financial situation or your long term goals. Research and guidance are necessary not to mess your plans up.

Co-housing and communal living

The concept of communal living spaces and communal homeownership are slowly gaining popularity among the younger generation as innovative and more sustainable housing solutions, giving today’s real estate market.

This kind of arrangement creates a heightened sense of community and collaboration among homeowners living nearby. It goes beyond the notion of ownership and property. People living in communal living space will share common areas, amenities and responsibilities. This form of communal work creates a unique sense of camaraderie, solidarity and support.

Co-housing and housing cooperatives enable like-minded people to collectively own and manage housing units, by pooling resources for bills and expenses, and creating a centralised system for decision-making. This system makes housing more affordable and eco-conscious living, by reducing the environmental footprint and sharing resources.

Make an offer and negotiate

Once you’ve found your dream home, whether it’s a rent-controlled, communal living or lease purchase, it’s time to make an offer. If you have a real estate agent they will assist in creating and crafting the perfect and competitive offer that takes into account all the current market conditions. Be ready to negotiate, as the market nowadays is saturated and good properties are difficult to come by. The seller may counter your offer, so be ready for that as well. Effective negotiation skills and flexibility will play a pivotal role in getting the best possible deal on the market.

Conclusion

Budgeting and saving up to buy a house, does not have to be a daunting task. Assess your budget, explore your mortgage opportunities or even consider communal living and alternative housing models. Being rich helps, but does not have to be a prerequisite for having a comfortable and fulfilling place to call your home. With careful planning, dedication and the right amount of research, you can find the right housing option that fits your needs and budget.