Like any other investment, buying property has its risks, and when you consider the high price of land nowadays, it makes sense to act with caution. If you are looking to buy your very first home, here are some common mistakes to avoid.
Think of the Future – If you can say with some confidence that you intend to live in the property for at least 3 years, then buying is a wise move, however, if there’s a chance you might have to relocate in the near future, it might be best to carry on renting for now. There are costs involved in the buying and selling of property and if you have to relocate again in the near future, it might not be practical.
Stick to Your Budget – It is oh so easy to fall in love with a home that is just out of your financial reach, and some justify this by saying they will somehow get by, when in fact, many people regret their decision to buy a house that they cannot afford. When crunching the numbers, it isn’t simply a question of the mortgage repayments, as there are other expenses, such as upkeep and maintenance, stamp duty and of course, legal fees. A reputable law firm such as rivercityconveyancing.com.au can help you to calculate your total costs and if you are a first-time buyer, you might qualify for stamp duty concession, which will really help.
Essential Legal Services And Advice – It is never a good idea to purchase a property without first having some searches carried out. This is something that a conveyancing lawyer can handle, and by taking his professional advice, you can be sure that the property is, in fact, everything the seller claims. In the event you buy a plot of land or a house and you are not aware of certain things, this could be a costly mistake. Buying a plot of land that does not have planning permission is a classic example of the mistakes that can be made when buying real estate.
Avoid Paying a Minimum Deposit – If you pay a minimum deposit, it might help with the short-term finances, yet what if, for some reason, you had to sell in the near future? You would have almost zero equity and with all the costs involved, you would end up at a serious loss. If you are that stretched financially, perhaps it is better to wait a year and continue to save for the deposit, which would certainly make things easier.
There are a few more house buying pitfalls to watch out for and you can read them from articles available online.
One must always take into account the various costs that come with buying real estate and by avoiding the above pitfalls, your home purchase will be a wise investment. You would be well-advised to take your time when searching for the ideal home, as properties can come onto the market at any time, and if you get mortgage pre-approval, you can house hunt with some confidence and sellers will take you seriously. Armed with the right knowledge and mindset, you’ll be set up for success. Reach out to the Inspect East team with any question.