While first home buyers are often inundated with advice on how to break into the property market, it’s less common to give them a heads up on what not to do.
Buying your first property is also one of the first steps of building wealth, as the equity in the home will usually allow you the opportunity to access further loans if that’s what’s on your radar, such as shares, a managed fund, or even a second investment property.
Apart from having somewhere to live, the quest for home ownership is also about having a long term investment strategy. If we’re looking at it from the viewpoint of decades instead of months, generally house prices do rise, and so does the value of your investment. However, entering the market as a first home buyer isn’t easy, and there are many potholes to avoid on the road to owning your first home.
What Not To Do As A First Home Buyer
Making your first foray into the property market can be both expensive and confusing – there is simply a lot of information you need to be up to speed with. First home buyers are often inundated with advice from well meaning friends and family, but there’s no “one size fits all” approach when it comes to buying the ideal property.
In saying that, there are a few relatively common mistakes that many first home buyers tend to make. The good news is that in the property arena, knowledge is power. If you know what not to do, these tips can help you to make educated decisions that can allow you to save both time and money in the long run.
Not Making Offers Fast Enough – While careful forethought is usually advised when spending large amounts of money, it’s also important to remember that your dream home may resemble the same thing to other buyers. Even if it’s not the perfect fit, indecision can result in buyers missing out on a property that may have otherwise been a great fit for them.
Getting Intimidated By Reports – While just about every property has some form of issue, many first home buyers can get scared off by information included in a building or pest inspection. While they’re designed to save you time and money through uncovering defects, it’s also worth exploring the option to buy a ‘fixer upper’ if it’s within your budget to do so.
Not Getting A Pre-Approval – When you’ve settled on a home loan that’s right for you, aim to get a pre-approval. While a pre-approval doesn’t lock you into the loan, the assessment from the lending provider lasts for three to six months and shows sellers that you’re a serious buyer, with eligibility to lock in a loan up to a certain amount.
Buying Property Off The Plan – When buying off the plan, you get no chance to stand in the rooms and experience the atmosphere, the room dimensions, the view or the general vibe of the property. Amongst other issues, the process also involves signing the contract of sale long before settlement, and if your financial situation changes, you may lose your entire deposit.
Listening To The Media – In this day and age, paying too much attention to what’s happening in the news can easily invoke a sense of panic and dread. Don’t make the process of buying your first home any more stressful than it needs to be. Instead, do your own in depth research on the area that you’re looking to buy, as it might not be a suburb that’s deemed ‘newsworthy’.
Waiting Too Long To Dive In – While it’s understandable that many first home buyers have opted to wait until the property market simmers down from it’s current peak, the general rule is that property is always going to increase in value. People who purchased a home ten years ago are in a much better financial position now, so it’s worth considering rentvesting as well.
For first home buyers in particular, the services of a reputable mortgage broker can help you to understand the ins and outs of the world of home loans and ensure that you’re matched to a product that’s best suited to your own individual set of circumstances – but where do you find one?
How To Streamline Your First Property Purchase
The big attraction of buying your own home is just that – it’s yours, once you’ve paid back the banks of course. However, first home buyers don’t have it easy, which is why we’ve compiled our very own in depth First Home Buyers Guide. This resource is completely free to download, and can be a game changer when it comes to ensuring that you’re up to speed on how to get into your first home faster.
With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best, and another example of this is the free to use Savings Goal Calculator found on the Cherry Lending & Finance website.
If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility apply.
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