Attention First Home Owners

Realestate.com released a list on 23 October 2024 of common mistakes first home owners do, so that you do not make the same mistake.

• Skipping Finance Preapproval – Very important as there is no use looking at expensive houses if you can not afford them.
• Underestimating costs – there is no use signing a contract if you haven’t factored in things like insurance, inspection costs, transfer duty, legal fees, bank fees, moving costs, rates and water.  It can all add up quickly.
• Not engaging a Solicitor early enough – It is very important that you find the right Solicitor.  It is also very important that at the minimum that you get your Solicitor to review your contract before signing.
• Missing out on first home owner incentives – these are different based on which state you live in.  You should ask your lender and your Solicitor whether you qualify for any incentives and make sure that you apply.
• Overlooking inspections – a Building and Pest inspection can seem expensive and you may think that you don’t have the money to do it, but these inspections can save you thousands of dollars in the long run.  Also if a problem is detected it can allow you to continue to negotiate with the Seller and possibly get a reduction in the purchase price.
• Letting heart rule over head – sometimes the emotional pull of a property is too much.  However, you should always take a step back and think about putting in that offer and even go back for a second inspection to make sure that the rose coloured glasses are off.
• Ignoring long term considerations – Just because your first home may not be your forever home, doesn’t mean that you shouldn’t think long term.  You should consider if you are starting a family, am I going to get a pet, what is going to be the resale value later on when I look at upgrading.  All these things can have a big impact on your finances later on.