7 common mistakes first home buyers make

Are you looking at buying your first home now or in the future?

Then this episode is for you.

I'll be talking with Marc and Sally from Finder.com.au about things first-time homebuyers need to do to make the most of their purchase and the mistakes they should avoid.

Even if you're not a first-time buyer, the property information we discuss is valuable for those who have been through the process before as well.

Mistakes First Home Buyers Make

1. Buying emotionally – Your first home is not likely to be your last home, so it's better not to get too emotionally invested in the process. Instead, think of it as an investment, and a stepping-stone to your next property.
2. Not factoring in all of the real costs – Everyone looks at the price of the property first, but it's important not to let all of the other costs, like stamp duty, conveyancing, moving costs, rates and taxes and insurance and maintenance, body corporate fees, and mortgage fees get left out of the equation.
3. Overextending financially – A mortgage broker can help you navigate loans and work out a budget, so you don't end up taking on more than you can really afford.
4. Not doing your proper due diligence – Don't forget the seemingly little things like building and pest inspections. These can help you avoid potentially big problems down the road.
5. Not understanding the contract you're signing – Once you've signed a contract, you're obligated to fulfill the terms, so it's important to understand what you're getting into. Your legal representative can help make sure that you're fully informed before signing on the dotted line.
6. Not getting finance pre-approval – When you get your finances organized ahead of time and get a loan pre-approval, you'll know exactly how much you have to spend and be at less risk of overextending yourself.
7. Trying to do it on your own – Buyer's agents, mortgage brokers, and solicitors are all examples of professionals whose expertise can help make sure that your buying process goes smoothly and you get what you want and understand what you're getting. Don't try to go it alone.

Links and Resources:

Michael Yardney

Metropole Property Strategists

The original episode of this show appeared on The Pocket Money Podcast - finder.com.au

Join Michael Yardney and a group of Australia's leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane, and Melbourne Use the coupon code PODCAST and come as our guest.

Show notes plus more here: 7 common mistakes first home buyers make

Some of our favourite quotes from the show:

"And the other thing is, if you buy emotionally and overpay, it's going to cost you a lot more than you need, and that's going to be an extra cost in stamp duty and interest for a long, long period of time." –Michael Yardney

"When you rent, you don't think about paying things like rates and taxes and insurance and maintenance, body corporate fees, those sort of things." – Michael Yardney

"Today, in this current lending environment, it's much, much harder to get a loan, there's a lot more hoops you've got to go through, it takes longer than it used to." – Michael Yardney

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