First home buyers are not the only ones that make mistakes when purchasing property, but many that we meet have fallen into similar traps.
Here are just a few to be aware of:
Don’t fall in love with a fabulous renovation and overlook a terrible location. It is easy to be seduced by the latest kitchen and bathroom finishes and forget that you are paying a premium for them today, as they will surely be dated within 5 years. If you pay this premium and find yourself living on a busy road or in the best house in the worst street, you could pay dearly when it comes your turn to sell.
Don’t get turned off by clutter and drab décor and overlook a good floorplan or great location. Just as it is easy to fall for a well presented home, it is hard to fall in love with a poorly presented one. However some properties can be transformed when the current occupants move out all their junk and you clean it up and give it a lick of paint. If this home is in a top location, you will make an excellent investment by getting a discount on the price you pay and then adding immediate value with a small outlay and a bit of elbow grease.
Don’t become fixated on what price a house sold for last time and forget that its current value needs to be assessed in the context of what similar properties are now selling for. You could be missing out on a great home by not focusing on what it is worth now.
2018 update: Are you a preparing to buy your first home and wondering where to start? Or simply overwhelmed and want to get it right? We’re working on a cost-effective way to help you. Can you spare 2 minutes to answer a few questions so we can really understand your challenges? Click here – and if you want advance notice of what we’re working on, be sure to leave your email address.
First published May 2014.
Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.