There's no doubt that buying a house for the first time is a daunting experience. If you're a first home buyer you should be prepared both mentally and financially for this new stage in your life. This preparation should start with seeking the assistance of the right team of professionals to give you the most reliable advice.
Keep reading to learn the five common mistakes that we've seen first home buyers make and how you can avoid making them.
Not knowing the finance you can afford
A lot of first home buyers don't know how much they can afford in terms of finance. Before you speak to a lender you need to be aware of your total savings, expenses and debts.
To avoid being put into this position, we recommend consulting a Real Estate Investment Finance, Finance Specialist. They'll be able to run through your numbers to determine your borrowing capacity. Our specialists will then work with our panel of over 40 lenders to source you the most suitable lending option.
Being unaware of the finance grants and concessions available
A common mistake that we see first home owners make when they're 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 type of property to buy
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.
Acting 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 think practically about whether it'll 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 the finance expenses
If you're buying a house for the first time, you should 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.
Find out more
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're assisting first home buyers across the country to successfully get into their first home by implementing and providing techniques that'll set them up for success. For more information, contact us on the details below.
Ph: 1300 130 932
Email: clientservices@reif.com.au
