Buying your first home is one of the most exciting things you can do. I still get a real buzz from helping first home buyers find their dream home and get them off to a great start for the rest of their lives. Here are some real estate mistakes that plague first home buyers, keep reading to see how to avoid them.
Give up to save up
We are saturated at the moment with news telling us that buying a home is not an option anymore for first home buyers. As I have learned from the Barefoot Investor, Scott Pape, believing this is the first mistake you can make as a first home buyer. Scott claims “The average full-time pre-tax wage in Australia is $75,000, or $4,800 a month in the hand. So, a couple both earning full-time wages could live off one income (very frugally) and save a $100,000 deposit in 21 months”. Anything is possible if you are willing to put in the hard yards to get there. Talk your agent, your financial advisor, friends and family, people who have had dealings with saving for a property and get a plan in place to make it happen. Giving up the dream is the quickest way to not achieve it.
Buy when you really can’t afford it
The biggest mistakes I have learnt from Scott and I need to share with my buyer’s community is that you should only buy when you can actually afford to. Getting together your deposit is only the beginning. There are a lot of costs associated with owning a property and actually purchasing a property. You should only venture down this path when you are truly in a position to do so, and the end result will taste much sweeter with a realistic approach. I suggest setting a budget similar to what would be required once you are a homeowner with all the costs of owning a property. This can really help you determine whether you can afford the commitment.
Fail to narrow down
There are so many properties available to purchase out of the suburbs. There are also so many gems a little bit back, off the beaten track. Narrowing your choices to a particular suburb or area and refining down by budget, will help you pinpoint your search.
If you are a first home buyer and are looking for some guidance in the real estate market, don’t hesitate to reach out to me.