Buying a first home is tremendously exciting but it also comes with complexities. Make buying your first home a rewarding and stress-free experience by avoiding five common pitfalls – and knowing the first home buyer mistakes to avoid.
5 pitfalls of buying a home
1. Scrimping on research
You’re not just buying a home, you’re buying into a neighbourhood. Research your preferred suburb thoroughly to have an idea of home values (essential for your price negotiations), the quality of local amenities like shops and cafes, and any possible future developments that could impact the area. Your Aussie Broker can help by providing free suburb and property reports.
2. Underestimating the costs
Buying your first home doesn’t just mean saving a deposit. There is a range of other costs associated with a home purchase including legal fees, home building insurance and moving expenses. Consider creating a budget that allows for all the costs involved so you’re not left scrambling for cash at any stage.
3. Settling for a property that doesn’t tick all the boxes
Buying your first home can call for some flexibility and compromise however some home features may be more important to you than others. Your home should meet your needs so draw up a list of must-have features – it can help you stay grounded when you start inspecting homes for sale. If you’ve decided for example, that off-street parking is absolutely essential, don’t be blindsided by that cute cottage with zero parking.
4. Overlooking a pre-purchase inspection
Some home buyers discover issues with their place after they move in A simple way to avoid this trap is by arranging a pre-purchase pest and building inspection for any property you’re thinking of buying
5. Rushing property inspections
You could be living in your new home for many years, so invest some time giving it a careful inspection before you sign on the dotted line.
Aim to inspect a property more than once – preferably at different times of the day. This will give you a better idea of things like interior light and neighbourhood noise.
First home buyer mistakes to avoid
It goes without saying that buying your first home is a major purchase, and that makes it worth understanding how the process works. Yet plenty of first home buyers are unsure about what’s involved – this can create stress and even see you caught out facing unexpected costs.
Use the time you’re saving for a deposit to read up, do lots of research and become more confident about buying your first home. That’s where an Aussie Broker can help – even if you’re not ready to buy now, meeting with a broker early can set you on your path to home ownership.
One of the most common questions that first home buyers ask is how much they can borrow. Starting to look for a home without knowing your borrowing power can lead to disappointment if you see a place you love only to find out you can’t afford it.
Keep it real by talking to your Aussie Broker, who can eliminate this uncertainty with a tailored explanation of both your borrowing capacity and how much of a deposit you really need.
Avoid some basic traps and mistakes, and buying your first home can be smooth sailing – as well as highly rewarding.
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- Chapter One : Getting started
- Chapter Two : Your dream home
- Chapter Three : Money matters
- Chapter Four : Ways to purchase
- Chapter Five : Understanding interest rates
- Chapter Six : Understanding home loans
- Chapter Seven : Lending sources
- Chapter Eight : Getting your loan
- Chapter Nine : Choosing a home
- Chapter Ten : Steps to settlement