20 Oct 2016
Home Buying Warning Signs
Buying a new home is both exciting and daunting. Being such an enormous investment, there’s a lot on the line (and a lot of pressure to get it right).
Ideally your home will be beautiful, safe and poised to gain value over time. But what if you overlook a crucial detail and sign the contract before it’s too late? What if you house hunt unaware of the potential red flags and wind up investing in a money pit?
Finding a home is tough, so if you happen upon one that you really like, you might be tempted to make an offer right away. But regardless of how eager you are to finalise the transaction, you should always check for red flags and potential problems before asking for the keys. Appearances can be deceiving.
Before locking in your new dream home, always investigate these things:
Location
The location of your new property can be a factor in many ways. It’s always advisable to understand the local area’s trends, demographics and stats. This information is key not only in deducing the living experience the home will provide, but also its future value.
In addition to these considerations, you should ensure your property isn’t in a flood zone. With climate change bringing about more and more unpredictable weather cycles, the importance of buying “flood-proof” property is only going to get higher.
Condition
This one is probably obvious, but too important not to mention: Have an inspection done!
No matter how beautiful the home may look, the plumbing and electricity in particular must be inspected by a professional. Some sewer lines in Australia haven’t been updated for 100 years – a fact that has no bearing on the appearance of your home but may drastically affect your wallet.
And as for the electrical system, a comprehensive rewiring can cost five figures! Not only does it benefit your safety to ensure the system isn’t a fire hazard, it could be absolutely crucial to your finances.
Renovation wiggle room
Finally, if you’re planning on renovating the home or adding anything to it, you should absolutely consider zoning restrictions before finalising the purchase.
Ask the local municipality about the restrictions that are in place, and whether or not they affect your renovation plans.
Mortgage House
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 advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.