Most Common Buying Bloopers

Buying Bloopers

Most Common Buying Bloopers

We can all agree that buying a property is one of the biggest financial commitments we will ever get ourselves into, so amongst the excitement, it’s important to stay focused and ensure you are making the right decisions. Below are a few of the top mistakes that are made when purchasing a property and although some of these may seem simple they are often overlooked and can be costly.

Underestimating the costs of purchasing a Property.

Buying Bloopers
When looking to purchase your home or Investment property remember that the total cost of the process is not just the property price itself. There are other costs involved which you may be unaware of but can really have an impact on your pocket. Valuation fees, Application fees, Legal fees, Building and pest inspections, Lenders Mortgage Insurance (LMI), Stamp Duty, Title Registration, Title insurance and more, really add up when you are unprepared for them.

TIP: Always talk to your Broker about the costs of fees and the possibility of waving some of these costs

Not securing pre-approval for a Home Loan.

Now I know this one sounds obvious but believe it or not many people start shopping around, find a bargain, fall in love with the property only to watch someone else purchase it while they’re trying to secure finance. A pre-approval should be the first thing you do, it gives you peace of mind and you know exactly how much you can borrow.

Falling in love with a house that’s out of your financial league.

Once you’ve fallen in love with a particular property, it’s hard to go back so don’t let feelings cloud your judgment! We’re all guilty of buying something we felt so attached to that we just had to have it, doing this with a price tag in the hundreds of thousands is dangerous. Avoid the temptation to get in over your head. Click here to find out how much you can borrow or simply give us a call.

Overrating your Mr. fix it skills. 

Home improvement shows like The Block, Reno Rumble and House Rules are soaring in popularity and everyday Australians, seeing how much money can be made by purchasing a Fixer Upper, renovating and selling for a decent profit are jumping on the bandwagon. In reality, watching a renovation show v’s actually renovating are two completely different things, talk to anyone who has or is currently renovating and they will tell you exactly how different it is. While remodelling a kitchen, bathroom or outdoor living area may look easy enough to do yourself, in most cases, it’s not! Most people underestimate budgets, skill level and TIME if you think about everyone you know I guarantee at least one of those people have been doing a renovation that seems to be going on forever. In saying that there is a lot of money that can be made by renovating and you don’t even need to sell your property to cash in (but that’s a topic for another day).

My tip: Always seek independent advice from a licenced professional before purchasing a fixer-upper, be realistic about time and GUYS be realistic about your handyman skills.

Forgetting who the real estate agent works for.

Most real estate professionals are friendly people and in the course of house hunting, you will spend a lot of time with them. Do not mistake their friendliness as a sign that they work for you, in fact, real estate agents can’t actually work for both a buyer and seller, they have a legal obligation to work for their client, the seller so don’t get sucked in.

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