The flip side of the first-home buyer buzz is that it can encourage a little forgetfulness when it comes to the more mundane and tedious parts of buying a home. If you're tempted to jump straight into the decorating or housewarming arrangements before the basic admin is locked down, you're not alone. Here are some common steps first-home buyers tend to overlook:
1. Extra costs
When you buy a home, it can often feel like you're bleeding money. Not only do you have a potential 30-year mortgage hanging over your head, but you then need to pay for pest inspections, building inspections, lawyers – the list goes on. And this is all pre-settlement! After you've secured your dream home, there are even more costs like stamp duty, council or strata fees, insurance, real estate fees and everything in between. The answer? Do your research ahead of time.
2. Making a sensible budget – and sticking to it
On the note of extra costs, people can occasionally make the mistake of maxing out their mortgage on the price of the house alone. Make sure to sit down and make a budget, separate to your bank. Banks and lenders will look at your expenses for your mortgage, but what you can actually afford in reality might be different.
3. Getting stuck on the 'dream home' fantasy
Having a fantasy of your dream home is a double-edged sword. On the one hand it can lead you to never finding a property because you're unwilling to compromise on certain visions. On the other hand, it can lead you to rushing into buying a home you've become emotionally attached to, but may have other flaws. Remember to think logically, be methodical, do your research and don't get swept up in the aesthetics over the foundations. And always, always, get a building inspection.
4. Strategising and negotiating
Another side-effect of first home buyer buzz can be failing to strategise your property purchase. Research is the most important factor in overcoming this mistake. Doing your due diligence on an area can help you avoid falling for any misinformation from the seller's agent – and might help you avoid constant disappointment at auctions. A buyer's agent can also help in this department as they do this research and negotiating on your behalf.
5. Getting insurance
You've found your home, you've signed your contracts, you've paid all those extra costs – or have you? The last thing you want is for something to happen to the most expensive purchase you've made in your life, which is why you need to get home insurance sorted before you've moved in.
Once that's sorted, it's time to pop the bubbly and celebrate your first home! If you're still worried you've forgotten something in the excitement of it all, listen to what your friends and peers have to say. A simple conversation can go a long way.
FULL ARTICLE: https://www.realestate.com.au/advice/5-things-the-first-home-buyer-buzz-can-cause-us-to-forget/