Everybody makes mistakes but these ones could really cost you
The process of buying property can be an intimidating one that requires a great deal of preparation and patience. Under extreme pressure, property buyers can easily make mistakes that can be very costly in their future.
While Spring is traditionally thought of as one of the best times to buy due to an influx of property going on the market, many capital cities such as Melbourne have shown a slow start to the selling season.
There are some very basic mistakes you can avoid to make the buying process easier for yourself during the spring property market this year.
1. Forgetting to secure a pre-approved loan
One large mistake that property buyers make is not getting their loan pre-approved. Getting this shows that you’re taking the process of purchasing a home very seriously. When you get pre-approved, your lender has given you conditional approval to borrow a set amount of money. Through this process you have an idea of your borrowing capacity and will be prepared when you find the perfect property you’ve been searching for.
2. Underestimating the costs
A problem that many first home buyers encounter is underestimating the full price of how much it costs to buy a property. While all buyers are aware of the hefty price of the actual property, there can be many smaller (by comparison) extra charges that can add up to a substantial amount.
Costs that are governmental and others from your chosen financial institution are just some charges that can bring the price of purchasing a property up a significant amount.
Property buying also incurs one-off property costs such as conveyancing fees and property valuation charges.
3. Failing to budget well
When buying property, a buyer can understand the full cost of purchasing a property and still run into financial trouble. One of the key aspects of buying a property is setting your budget and keeping to it. While you should never settle for a property you don’t want, the ideal property is one you can afford.
It is very easy for prospective buyers to slip into the trap of ‘falling in love’. This is where a property is seemingly perfect is every way except one: price. In this instant, a buyer will throw caution and common sense to the wind and go ahead with the purchase, putting their financial future into a perilous position. The best prepared buyers will make a thorough, realistic budget and stick to it.
If you do find your dream property and feel you have to stretch beyond your budget, crunching the numbers again is a must to make sure you can actually afford it.
4. Being uninformed
Not all mistakes that buyers make are financial in nature. Some are as simple as not being informed when making the final call on whether to buy or not.
In order to be fully informed, savvy property buyers can conduct multiple inspections of the places they are considering. They can even get a professional to inspect the property for them. Using a professional who knows what they are doing and understands what to look for is a sure-fire way to ensure that you are purchasing a property that is right for you.
Something not often thought of is conducting an inspection in wet weather. If you are lucky enough to have the right weather coincide with an inspection, it allows you to look for any leaks that the property may have.
When purchasing a property though, the most important thing to remember is that it’s your decision. Consider the opinions of close ones and professionals but ultimately only you can make the final choice to go through with the purchase.
If you're looking to buy a property, whether it's your first or fifth, the experienced sales team at Little Real Estate can help you on your property journey. Contact us for expert advice that will make a real difference today.