06 Nov Costly Mistakes First Home Buyers Make
First time purchasing a property? Knowing the right information can help you avoid the worst financial traps.
Buying a home is often the single largest investment Australians can make. For first time home buyers, it can be a daunting experience. They can easily be confused because of their inexperience combined with the intense emotions that come with owning your first ever property.
If you are a first home buyer or know someone who is, make sure to avoid these costly mistakes:
Doing it alone
You have the option to DIY everything, but to avoid regrets in the end (which are often costly), seek the help of a professional. You wouldn’t do it by yourself when it comes to your health or your education, so why should you when it comes to your finances and the roof over your head? Search for a local finance broker in your area. As a mortgage broker, I can help you navigate through the process up to the settlement and I don’t charge for this kind of service.
Not knowing the mortgage jargons
You don’t necessarily have to know everything about mortgage but it pays to learn about the basics. Knowing the details of your home loan keeps you out of trouble. Knowledge is power in the mortgage world.
Not having a buffer
It’s not enough that you saved up for the deposit. Beyond buying, first-home buyers need to consider the hefty costs of stamp duty, building inspection or strata reports, transfer fees, solicitor fees, moving costs, new furniture or even renovations.
Forgetting about the grant
As a first home buyer, you are in a unique position in the property market, as you have access to the First Home Owner Grant. WA provides up to $10,000 to eligible people, available from the Department of Finance. To be eligible for the FHOG, you must be an Australian citizen or permanent resident, and above the age of 18.
The first property you will ever own is a stepping stone for your life so it’s so important to get the process right. If you need further details or have some clarifications, feel free to send me a message on 0408 081 082.
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This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.