Avoid These Costly Shortcuts When Buying Property
Considering that buying property can easily be a lifelong financial commitment, you would think that most homebuyers would be extra careful about making their move into the housing market. Surprisingly, many people rush in and continue to take shortcuts. Many skip the basic due diligence while buying their home, therefore getting themselves into a lot of hot water.
Here are tips for avoiding the most common mistakes:
Don’t skip the research.
Homebuyers are falling into the trap of not researching and getting an understanding of the local area in which they’re purchasing. What we always recommend is that you should thoroughly research the property you intend to buy or invest in by conducting the local government and area checks before actually purchasing the property.
Not researching future development or zonal restrictions for the area could affect future prices. Is there any future development planned for the area? What are the local council zoning restrictions? These things could affect the future development or renovation of a property, and ultimately its value.
Other considerations also include what’s the flood modelling? Is the property in a bushfire zone? The outcome of these searches can affect how you build, your insurance premiums, and the overall security of the property.
Don’t skip the pre-approval.
There can often be a big difference between what you think you can afford and what a lender is willing to loan you. However, all too often, first-time home buyers for example, begin house hunting without first finding out how much they can borrow.
By getting pre-approved by a lender, as the buyer, you have a clear idea of the budget you have to work with, and can then narrow down your search to properties you can afford.
Don’t skip the building and pest inspections.
The rush to secure your property without getting the professionals in to do a thorough building and pest inspection could be another costly error. Asbestos in old homes, hidden termite infections or unauthorised structural extensions could cost hundreds or even thousands to fix and may also make your dwelling unsafe.
You can easily avoid these homebuyer traps, and it’s best to do your homework in advance. Get advice from professionals like the Lending Specialists at Mortgage House and also check with other property buyers you know, who’ve been through similar experiences. Whether you’re a first-home buyer or an investor, the most important thing to remember is there’s no need to rush, as there’s always going to be another property.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for information about the best options for you when it comes to your mortgage.
Click here to speak to us!