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Buying your first home is a significant milestone in anyone’s life. However, as a first-time homebuyer, it can also be a daunting experience, especially if you’re not familiar with the process. There are many factors to consider, including your budget, the location of the property, and the type of home you want to buy. Let me start by saying that making mistakes along the way is super common (we’re only human, after all). However, doing everything you can to avoid them can save you a lot of time and money. In this guide, we’ll discuss some of the top mistakes to look out for as a first-time homebuyer.
Mistake #1: Not doing your research
Before you start looking for a home, it’s essential to do your research. As a first-time homebuyer, you need to know the market, what type of property you’re interested in, and what your budget is. If you don’t do your research, you may end up buying a property that’s not right for you or paying more than you need to. Rather than absorbing as much information as possible, look for key sources of trusted information. I’ve been loving Dom Nesci’s book ‘You Won’t F*ck It Up’ and highly recommend it for anyone needing some guidance and inspiration.
Mistake #2: Overlooking hidden costs
When you’re buying a home, there are many hidden costs to consider. These costs include stamp duty, legal fees, inspection costs, and moving expenses. Make sure you factor these costs into your budget to avoid any surprises down the road. It’s important to be realistic here; you may need to seek out professional advice to get an idea of all of the costs involved.
Mistake #3: Not getting pre-approval
Getting pre-approval for a mortgage is essential before you start looking for a home. Pre-approval will give you an idea of how much money you can borrow, which will help you narrow down your search to properties that are within your budget. It should also avoid you wasting time lusting over properties that may not be within your budget right now and will help you to prioritise and seek out opportunities that will work for you.
Mistake #4: Not considering the location
Location is everything when it comes to buying a home. Consider the proximity of schools, shops, public transport, hospitals, and other amenities that may be important to you when choosing a location. Ask yourself: does the neighbourhood the property is in appeal to you and your needs? Is it accessible, well-maintained and in close proximity to amenities? These all point to it being a suitable location. Also, think about the future potential of the area. Is it up-and-coming? Will it grow in value over time? Are there current plans to develop in the area in the future?
Mistake #5: Not inspecting the property
Before you buy a property, it’s essential to have it inspected by a professional. Inspections can reveal any potential issues with the property, such as pest infestations, structural problems, or electrical faults. Knowing these issues before you buy can save you a lot of money and stress in the long run. Seeking out professional advice can help you feel more confident in your decision-making, especially as a first-time homebuyer. There is a lot to consider so don’t try and do it all; bring in the big guns when and if you need to.
To sum it up, buying your first home is an exciting experience, but it’s essential to avoid these common mistakes. By doing your research, considering hidden costs, getting pre-approval, choosing the right location, and inspecting the property, you can make smart property investments that will benefit you for years to come.
And most importantly, enjoy the process! This is a massive milestone you’re setting out to achieve as a first-time homebuyer and while it can feel scary, there is a lot of information available to help you along the way. If you need help with any of these steps, we recommend you reach out to an independent financial and legal advisor to get started.
There is more than just one way to buy property. If you’re a first-time homebuyer ready to kick-off your search for your new home or your next property investment, download the Coposit app and start browsing from a range of projects where you can secure your home for as little as $10k upfront.
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