Buying your first home can be a daunting experience, and you may feel like there is far too much to learn before you start searching.
Everybody has tips and tricks about what to look for in a first home, but what about the properties you should absolutely avoid? We’ve put together a short list of homes that you shouldn’t take on as your first.
1. The Budget Buster
This is the house that has everything you had on your wish list (plus some stuff you didn’t know you wanted), but it is above your budget. It’s tempting to just sneak across that budget line, but don’t be fooled. This can end up being a catastrophe.
First homes are not dream homes 99 per cent of the time.
You aren’t just budgeting for the house itself: you are budgeting for all the potential problems that may crop up as you move in. Perhaps your fridge suddenly breaks down or the door begins swelling in the rain and needs a revarnish.
First homes are not dream homes 99 per cent of the time. Make sure you know what you can afford within the bound of your first home buyer loan and don’t spend over it.
2. The Shiny One
Oh my goodness, it’s beautiful! The kitchen is fantastic, they must have remodeled the bedrooms and I shouldn’t get you started on the carpets. But remember, sometimes beauty is only skin deep.
This one is a real heartbreaker, because sellers can put in a small amount of work to squeeze a lot more money out of you. You might even compromise on some major issues because you like the fresh lick of paint or new curtains so much.
Depending on where in Australia you are, these kind of small changes are cheap, savvy ways for a seller to push their value up and are very common in the industry.
Always make sure you get a building inspection done. They won’t miss the telltale signs of rot or water damage carefully covered up by new skirting or fresh wallpaper.
3. The Last One on the Market
You’re tired. It’s been months of looking, and everything has either been too far away from work or too expensive. The last one you saw was perfect but somebody else came in and snapped it up with a better offer.
You could scream at this point, or even worse, simply settle for the last house on the market. With the average first home loan in September being recorded as about $350,000 by the Australian Bureau of Statistics, that is a lot of money to waste simply from being fatigued.
When you encounter a lack of house-hunting willpower, just take a break, have a rest and continue when your resolve has returned. Better to wait than to buy the last turkey in the shop.
Even after your first home and you’re looking at a property investment loan, be sure to keep these tips and tricks in mind! They never go out of style.
If you’d like some smart mortgage advice, I’d love to hear from you.