Buying your first home is a pretty overwhelming experience. There’s a lot to think about and it’s easy to make mistakes. Avoid the most common pitfalls with our seven simple rules.
Know what you can afford
Subtract ALL of your monthly expenses (excluding rent) from your take home pay. That’s what you can afford on monthly repayments. Use this to work out your property price range.
What you think you can afford and what a lender will give you are two different things. Avoid disappointment and get loan pre-approval before making any offers.
Add in additional expenses
As a home owner you’ll also have to pay rates, insurance and maintenance costs (strata fees for units).
Don’t be too picky
Be prepared to compromise on the not-so-important stuff like outdated furnishings and decor. But don’t compromise on things that will negatively impact your life, like fewer bedrooms when you’re planning a family.
Have a vision & look for potential
Focus on the bones of the house and its potential rather than its current appearance. Look for ways you can add value to the property in the future. Cosmetic changes and renovations will help you build equity in your home, helping you climb the property ladder.
Make a thorough inspection
Carry out thorough inspections before you make an offer. Know exactly what you’re in for in terms of renovations and repairs and ask yourself if you can really afford it.
Have an agent on your side
Get the best deal possible and have an agent lined up to see to your interests.
Need more first home buyer’s tips? We’ve got everything you need right here.
Back « A first home buyer's guide
Looking at buying a house. Sick off paying rent at $460 a week. Need your guidance please!
Instantly compare home loans which suit your needs, and get the banks to work for your business.