Avoid These Mistakes When Buying a Property

Buying a property is a big deal, and it’s a life changing moment that you definitely do not want to mess up. While you may feel confident and informed, you need to stay focused and make sure you aren’t falling into any common traps or making unnecessary mistakes. Here are some errors to avoid when buying property.

Blowing Your Budget

It seems like common sense – don’t spend money that you don’t have (or can’t afford to pay back to the bank) – but many people who buy property are left with empty pockets because they overspend. Before you buy, plan ahead and try to save as much money as possible. The bigger your deposit, the smaller your loan will be. If you aren’t going to be able to afford your mortgage, you will be left in a highly stressful and risky situation.

Forgetting The Running Costs
Your mortgage isn’t the only expense you will have if you are buying a property to live in. You must factor in running costs when deciding whether or not you can afford to buy. The bigger your family, the bigger your utilities bills will be, so keep that in mind when working out how much money you will be forking out each month.

Buying For the Sake of Buying

Perhaps you have been waiting a long time to buy a property. Once you get a chance, you may want to jump on it, but DO NOT buy just for the sake of it. Making an impulsive purchase simply because you want to own your home as soon as possible is a bad idea. You will spend less time investigating, which will result in a less informed decision.

Skipping The Inspection

In today’s digital real estate environment, with online listings and virtual tools, you could make the mistake of thinking you can forgo an inspection. Don’t do it! There’s nothing like viewing a property in real life – it will help you get a “feel” for the place and allow you to spot any not-so-attractive features that may be hidden online.

Being Narrow-Minded

You may have a favourite suburb or two that you would LOVE to buy in, but don’t let them cloud your vision and prevent you from seeing other golden opportunities. Particularly for investments, it is wise to look into a variety of suburbs, especially those with affordable house prices, high rental return and room for growth.

Not Getting Pre-Approval

Once you’re ready to buy, it is a good idea to get a pre-approved loan. One of the biggest property mistakes occurs when a person hasn’t gotten their loan pre-approved and can’t make a confident offer. Have your finances organised to avoid missing out on your dream property.

Not Doing Your Own Research
When buying property it is essential to consult real estate professionals, such as the experts at OpenAgent. However, you should also take the time to do your own research beforehand. Search for various property types in different suburbs, and look for factors such as growth and rental yield. To get an idea of the people and lifestyle within a suburb, you can look up suburb profiles. By doing research before you meet with an agent, you are armed with information and can ask for their input.