• Real Finance

5 Common Mistakes First Home Owners Make

Updated: Mar 9

Buying your first home can be a daunting experience. At REIF we know this too well. We've all been first home owners at some stage too. As a first home owner it's important to be prepared, both mentally and financially. It's also important to have the right team behind you to get the most reliable advice. This will help you to ensure that you're setting yourself up for success. In this article we will be sharing the 5 Common Mistakes First Home Owners Make and the ways that you can avoid them.

Not Knowing What They Can Afford

Many first home buyers are unaware of what they can afford. Before you speak to a lender you need to be aware of your total savings, expenses and debts. Here at REIF we have a team of fantastic finance specialists who will be able to run these numbers for you to determine what you can afford on your finance lending. We will then be able to review these numbers with our panel of over 25 lenders to determine if you will be able to afford your home and be able to make repayments on it.

Being Unaware of Grants and Concessions That Are Available

A common mistake that we see first home owners make when they are looking to enter the property market is that they don't know about the grants and concessions that are available for them. These grants and concessions will provide you with huge savings that you can use to fund the deposit of a home. For instance, in Australia if you're a first home buyer, you may be entitled to the First Home Buyers Grant. The value of this grant depends on where in Australia you are located or looking to purchase your home.

The values of the grant in a few Australian States:

Queensland - the grant is $15,000

New South Wales - the grant is $10,000

Victoria - the grant is $10,000

Not Knowing What Property Type To Purchase

Whether you want to buy a standard house, unit or an apartment, it's a good to have an idea of what sort of property you want to purchase. First home owners should also know whether they want to buy a new or established property. It's a good idea to evaluate the type of property you want to purchase to give you perspective on how it will work for you in the future. You may eventually want to sell it or turn it into an investment property, so it's important to have a long term perspective in mind.

When They Act on Emotion

If you're purchasing your first home, it's only natural to feel a sense of emotion. At the end of the day, it's a big commitment. However, it's important to be rational when purchasing a property. You need to consider the practicality and whether it will be suited to your lifestyle and align with your short and long terms goals. Understanding the location and surrounding amenities should also be part of your buying strategy.

Overlooking Expenses

If you're becoming a home buyer for the first time, you need to be aware of the expenses involved in running that property. On top of your loan repayments, it's important to consider the following:

  • legal fees

  • council rates

  • insurance fees

  • maintenance costs

It's a great idea to budget and prepare yourself for purchasing your first home. You need to be able to evaluate your lifestyle expenses to accommodate the upkeep of your property.

More Information

Check out this video, for more information on these 5 Common First Home Owner Mistakes:

If you're looking to become a first home buyer, it's important to consider these common mistakes so that you can avoid them. Here at REIF we are assisting first home buyers across the country to successfully get into their first home by implementing and providing techniques that will set them up for success. If you would like us to assist you on your journey to becoming a first home owner, please reach out on the details below. We would love to be able to help you!

Ph: 1300 130 932


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