4 Mistakes To Avoid When Buying A House
Buying your home is an intimidating task, especially if it is your first home.
It is an exciting endeavor but full of complexities.
When you are genuinely putting your life savings into bricks & mortar, there are several things to think about, including a minefield of possible errors you want to avoid.
A Word From The Wise
Here are a handful of tips for first home buyers about mistakes to avoid making when buying a house in Adelaide.
1.Choosing The Wrong Home Loan
Many people find home loans confusing, especially if they are a first home buyer. It can be challenging to wrap our heads around all of the various home loan products on the market. Variable versus fixed rates, line of credit & split home loans, principal & interest payments versus interest only, redraw facilities and offset accounts. It is more than enough to give you a headache!
Our tips for getting a loan:
Find out how much you can afford. You should not just go to the bank’s website and use their calculator to evaluate how much you can borrow and assume you will get the loan. There is a considerable gap between what they can lend you and what they indicate on their website.
- Get your loan pre-approved to put yourself in the best negotiating position.
- Don’t rely on just one bank – instead, take the assistance of first home buyer advocates and lending specialists who have a spectrum of finance products and lenders.
FIXED RATE HOME LOANS
2. Being Influenced By The ‘Market’ & Your ‘Emotions’
2021 is an excellent time to invest in your first home with the availability of first home buyer grants.
However, buying a home is one of the most significant decisions you will ever make.
- Do not get swayed by SA’s property boom and jump in when you are not ready; however, waiting for the right time or prices to go down is also risking your family’s future.
- Keep your emotions in check. It is easy to fall in love with a luxurious master bedroom or a hardwood floor, and you are likely to pull out all the stops to get it – including spending too much to get it.
- Focus on big things that can impact your lifestyle, including whether the property has the potential to grow in value, accessibility to shopping centres & schools, and good transport links.
- Proceed within your budget, having your finance prepared and think about your present & future needs.
3. Going Beyond Your Budget
Every first home buyer knows the feeling – you are looking for a house that fits your budget, but that more expensive property is the picture that you have in your head of your dream home.
- When buying a house, it is always a good idea to keep your budget in mind. It will help you narrow down your choice of suburbs and property options.
- If you are stuck in finding the right property, there are always first home buyer advocates who will guide you every step of the way, right from evaluating your borrowing limit, to suburb & block selection and beyond.
- Spending more than you can afford, can also expose you to a financial shock, including unforeseen circumstances and volatility.
4. Not Including The Right Protection Clause In The Contract
Before signing any contract, make sure your interests are protected.
- You can not change or modify the contract once it is signed. The only way to change the contract is to end the existing agreement and renegotiate a new one.
We’re Here To Help You
Strong property market growth is projected for 2021-22, and you can trust us to provide you with strategic planning and advice.
There is currently a limited time offer to receive up to $30,000 in bonuses when you build your first home in Adelaide.
We’ll help you figure out what grants you can apply for and how much you can borrow.
Whether you are short of a deposit or perplexed about available grants, let us help you with direction, and guidance.
Let’s talk soon!
Adelaide First Home Buyers
Ph: (08) 8263 4009
Mob: 0432 230 298