6 Mistakes First-Time Home Buyers Make (And How to Avoid Them)

If you're a first-time homebuyer - congratulations! You're about to undertake one of the most exciting journeys of your life, and well on your way to providing more security, stability and peace of mind for you and your family. You probably can't wait to get that shiny new set of keys in your hands, and we don't blame you. It's one of the most incredible feelings in the world, being a new property owner.

We'd like to help you avoid some of the pitfalls that have tripped many a first-time buyer so, in this article, we'll be taking a look at some of the most common mistakes that people in your position make, and what you can do to avoid them.

Settling for the first option and not shopping around

Right now, the property market is booming for buyers with more people looking to sell. This means that you are truly spoiled for choice, and there's no reason to settle after your first viewing of a property. Take time to think about your needs, and decide whether this is really the place you'd like to call home for at least the next couple of years. A thorough discussion with your estate agent will also help you make an informed decision and you might well want to shop around a little until you find a property that ticks all the boxes.

Not hiring an estate agent

We've written about this in a previous blog post, but estate agents are like your personal navigators, which is exactly what you want when you're about to travel down an unfamiliar road. In addition to organising viewings of properties, your friendly agent will help you with a lot of the admin and processes involved with buying a house, such as drafting the offer to purchase and helping you get financing for the property.

Not seeing what they can afford

It's natural to be excited about purchasing your first home, but don't let eagerness get the better of you so that you overshoot what you can afford; the last thing you want to do is fall behind with bond repayments as this can severely damage your credit record, among other grim outcomes. Assess your personal finances first, discuss your budget with your estate agent, and then start looking for a property that you can commit to from a financial point of view.

Not taking additional expenses into account

Keep in mind that, when purchasing a property, you'll have to pay transfer and bond registration costs so be sure to budget for these additional expenses. The amount that you'll have to pay generally depends on the full purchasing price of the property and the conveyancing attorneys used. Depending on the condition of the house - you may be looking at buying a fixer-upper - so take into account what you'll have to spend on renovations and improvements.

Not researching the neighbourhood

A house doesn't exist in a vacuum, and you should definitely view it in the context of the environment in which it is situated. For example, the proximity of amenities such as shopping centres as well as schools and main routes are things you'd want to consider, not to mention the safety and security of the area. Also remember that buying a house is an investment, so do some research on property value trends in the neighbourhood so that you'll have a clear idea of whether the value of the property is likely to appreciate. Again, a chat with your estate agent should clear up any uncertainty.

Not shopping for the best rate

The recent repo rate cut is definitely a benefit to first-time buyers, but you should still do some enquiring about which bank or institution will give you the best interest rate, regardless of whether you've always used a certain bank in the past.

Need some more info on making the best buying decision? We can help! Contact us today.