Top 10 Mistakes New Home Owners Should Avoid

Excited. Stressed. Don’t know where to begin, but you’re ready to purchase your first home? Exciting! Whether it’s your first home, ready for a property development project, or just looking for some professional advice, you’ve come to the right place.

Here are the top 10 mistakes you should avoid when becoming a new home owner.

Mistake 1: No deposit or pre-approval
Saving a deposit is the first step to being able to step into the first home owner market. Once your deposit is saved, engaging with professionals like a Mortgage broker who can help organise your pre-approval and how much you can borrow, before taking the next step of looking out in the market for your first home. Having your pre-approval organised can also help you with your negotiating when you find your dream first home and this can be the difference between a vendor choosing you over another buyer who doesn’t have their pre-approval sorted. 

Mistake 2: Not understanding the costs involved to purchase
Once you’ve established how much you can borrow from your mortgage broker, keep the conversation going and ask the question around all the additional costs you will need to pay when purchasing your first home. Here are a few to make note of: Loan fees, Valuation fees, Lenders Mortgage insurance, stamp duty, building insurance, building, pest and strata inspection, strata fees etc.

Mistake 3: Not researching the areas you’re looking to live in
Finding a new first home with no research on the area is a mistake you should avoid when becoming a new home owner. Research the neighbourhood, look for public transport in the area, any further council projects to be aware of and always organise a building report prior to purchasing.  

Mistake 4: Don’t put a time frame on buying your first home
The famous quote from John Wooden: “Good things take time, as they should. We shouldn't expect good things to happen overnight.” Finding your first home which ticks all your boxes, can take a lot longer than expected and the timeframe you have in your mind, should not make you settle for a home you do not like. Sometimes there are a lot of factors which can build out your timeframe like the market just is not the right time to buy, you can’t find any properties when researching your desired areas which ticks one of your boxes, and this is okay. Remember, good things take time.

Mistake 5: Not conducting proper inspections
This is when it’s best to engage with the professionals again. During one of the open for inspections, have your professional you’ve engaged check everything out for you. Ask if they can look for any major faults in the property. Sometimes when you seem to have found a home which ticks all the boxes, you may miss some of the major issues. A fresh set of eyes always helps and this will set you up for success when moving into the negotiations and putting an offer forward.  

Mistake 6: Emotional buying
If you’ve been waiting a long time to find a property which ticks the boxes of what you were looking for, emotional buying can come into play. Is the layout of the property going to suit your living needs? Do you have access to public transport? Is the location right? Can I afford the property? These are some of the questions you should be asking yourself. Make a logical decision vs an emotional decision.

Mistake 7: Choosing the wrong home loan
Another key factor once you have found your desired property is making sure you research different home loans out in market. When you are about to sign a 30-year loan, choosing the right home loan is crucial. Engage with your mortgage broker who can assist with this process and find a competitive home loan for you. 

Mistake 8: Ignoring your future plans
Thinking of your future plans in your first home can help you make sure you are making the right decision. If you were looking for a pet friend to keep you company, is there enough space for your pet? Perhaps, you are looking to grow your family in the future, so reviewing how long your first home will suit your needs can help you when making decisions when purchasing your first home.  

Mistake 9: Engage with professionals before signing documents
When you are about to sign your first contract for approximately a 30-year loan, make sure you have some professional eyes look over the contract. We would recommend engaging with a solicitor or conveyancer to spell out any areas of concern before you sign your first contract. 

Mistake 10: Be mindful of the government funding
Are there any first home owners grant available for your first home purchase? Look at your local government funding websites to obtain the correct info for your state.