Everybody makes mistakes but these ones could really cost you. In this article SARAH JUBB from Little Real Estate outlines property buying tips and ideas that will save you both time and money.
Buying a property can be an intimidating process that requires a great deal of preparation and patience.
Under extreme pressure, property buyers can easily make mistakes that can be very costly to their future.
The 4 most common mistakes buyers make include:
Forgetting to secure a pre-approved loan
One large mistake that property buyers make is not getting their loan pre-approved.
By calling and meeting with a Home Loan Connexion mortgage broker to have your loan pre-approved – you are showing real estate agents that you’re taking the process of purchasing a home very seriously. When your broker gets you loan pre-approved, your lender has given you conditional approval to borrow a set amount of money.
Through this process you have an idea of your borrowing capacity and will be prepared when you find the perfect property you’ve been searching for.
Underestimating the costs
A problem that many first home buyers encounter is underestimating the full price of how much it costs to buy a property.
While all buyers are aware of the hefty price of the actual property, there can be many smaller (by comparison) extra charges that can add up to a substantial amount.
Costs that are governmental and others from your chosen financial institution are just some charges that can bring the price of purchasing a property up a significant amount.
Buyers also incur one-off property costs such as conveyancing fees and property valuation charges.
Not sticking to your budget
A buyer can understand the full cost of purchasing a property and still run into financial trouble.
One of the key aspects of buying a property is setting your budget and keeping to it. While you should never settle for a property you don’t want, the ideal property is one you can afford.
It is very easy for prospective buyers to slip into the trap of ‘falling in love’. This is where a property is seemingly perfect is every way except one: price. In this instant, a buyer will throw caution and common sense to the wind and go ahead with the purchase and put their financial future into a perilous position.
The best prepared buyers will make a thorough, realistic budget and stick to it.
If you do find your dream property and feel you have to stretch beyond your budget, crunching the numbers again is a must to make sure you can actually afford it.
Being uninformed and not doing the required research
Not all mistakes that buyers make are financial in nature. Some are as simple as not being informed when making the final call on whether to buy or not.
In order to be fully informed, savvy property buyers can conduct multiple inspections of the places they are considering. They even get a professional to inspect the property for them. Using a professional who knows what they are doing and understands what to look for is a sure-fire way to ensure that you are purchasing a property that is right for you.
Something not often thought of is conducting an inspection in wet weather. If you are lucky enough to have the right weather coincide with an inspection, it allows you to look for any leaks that the property may have.
When purchasing a property though, the most important thing to remember is that it’s your decision. Consider the opinions of family, friends and professionals, but ultimately only you can make the final choice to go through with the purchase.
General Advice Warning: The advice has been prepared without taking into account your objectives, financial situation or needs. You should therefore consider the appropriateness of the advice, in light of these objectives, financial situation or needs, before following the advice. We recommend that you speak to your accountant and financial adviser to help you determine whether direct property investment is right for you.