From a romantic point of view, buying a home of your own is dream-come-true scenario. You will not have to live in other people’s places anymore and you will finally have a chance to settle down. While this is all true, first-time homebuyers also have to stay rational to avoid making some major mistakes. Here are some serious fails that can happen to every single person that is buying their own place for the first time.
Sloppy property inspection
What many people do not realize before they buy a home is that the whole process consists of many details. When you have found a few properties you think are the candidates to become your new home, you should never leap at the chance without prior thinking. To be sure that the place does not hide any unwanted weak spots, it is necessary to conduct a thorough inspection of the property. You might have a look at it on your own, but the overall inspection of the place has to be done in a meticulous and professional way. This is something you should never save on, but hire one of those authorized agencies for home inspection.
Informing on Internet forums
As the number of Internet forums is growing, there are more and more people who use them as the main source of information on many topics. Housing is among the most popular topics on forums. While those online social hubs can give you some sort of information about the condition on the market, you should never rely solely on the things you read there. So, first-time buyers definitely have to avoid getting taking for granted the legal and financial advice from anonymous people on forums.
Laid-back approach to legal matters
The process of buying a home is probably the only activity in your life in which stress is recommended. A buyer should be tense and restless until everything has been sorted out. It is a life-changing decision and if you miss to cover all the aspects of the home-buying process, it might come back as a boomerang that you will be paying for years. Also, every country, even state has different regulations and buyers should get informed about them. For instance, in Victoria, Australia, buyer has to get a get a Vendor Statement, which gives the basic information on legal and financial conditions of a property. To protect yourself from any I-didn’t-know situations, you need to read this document and ask for additional clarifications if anything is blurry or badly-explained until you are sure the place is legal and valid.
Low Down Payment
Pressured by their existential issues, many people rush into taking a loan to buy a place of their own. The most logical thing that every buyer with only a little saved money does is take a loan that allows for a low down payment. However, what now seems like a great chance might be a real nuisance later in your life. Paying less at the beginning means spending a longer period of time paying the loan. The longer you pay the installments, the more money will be wasted on interest rates. Unless you have a substantial amount of savings for a significant down payment, keep saving and do not rush into a loan.
Falling for the area
Although every town has more and less attractive locations, it should never be considered the main feature for buying a place. Urban areas change as towns and cities grow. What now appears to be an attractive and promising area could easily lose its value over time. The most common mistake is thinking that first you will buy a smaller place and then sell it after a while, to buy a larger home. This is simply gambling, due to the current state of the market. It is wiser to wait for another year or two, until you have saved enough money for a home that will perfectly suit your needs, regardless of the area.
When doing something for the first time, a lack of knowledge can lead to mistakes. To avoid ending up in a dead-end street, follow our tips and find out more about the property-buying process from as many sources as possible.