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Don't Regret your First-Time Home Purchase

When buying your first-time home, there can be plenty of things you overlook, things you might regret later.

13/01/2022

 

 

 

Even an experienced home buyer can overlook a few of these important things when purchasing a home, so a first-time homebuyer should be aware of these points when researching for possible homes to buy.

 

 

 

 

Pre-Approval for a Bond

So, you are in the market to buy your first home. You have been online to see what is in your price range in an area that you like. But wait, don't disappoint yourself by going house hunting without first knowing what the bank will approve. That will only be setting yourself up for disappointment should you set your heart on a property that you cannot afford.

 

 

 

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Make an appointment with your banking institution to discuss what you would like in a property, and they will be able to perform a credit check and pre-approval process that will inform you of an amount that will determine the type of property you can view. We also discuss funding for your investment later in this article under extra funds for renovation or repairs and that you may want to include as part of the home loan.

 

 

 

 

Extra Funds for Renovation or Repairs

Knowing that you may need additional funds for repairs or renovations allows you to include this in your original home loan application or to at least save some money towards this. This is one of the biggest regrets for first-time homebuyers, many of whom wished that they had applied for the funds upfront to tackle any work that needed to be done.

 

 

 

 

Location, Location, Location

Purchasing the right property in the ideal location is everything, but despite that, there is something most people tend to overlook. Being close to a school for those with young children is important, as is travelling distance to nearby shopping centres, restaurants, etc. But people also tend to forget about any future development, and this could be a deal-breaker if there are plans in the pipeline for road expansion, planned rezoning for businesses, or the construction of developments that may hinder the view. Not only will choosing the wrong location affect you personally, but it may also affect the resale value of your investment.

 

 

 

 

Before signing on the dotted line to purchase a property, check rush hour traffic for the area.

 

 

 

 

Another reason why location is important is the distance you need to travel to school or work. Commuting to and from work can be the difference between having time at home with your family or spending more time on the road due to heavy traffic. Do yourself a favour and test out the location during rush-hour traffic before you finalise the sale.

 

 

 

 

 

 

 

 

Use a Reputable Estate Agent

During your search for the perfect home, you will no doubt encounter properties that are sold privately and do not use an estate agent, particularly when searching online. As a homebuyer, you do not pay any commission fees to the estate agent as this is handled by the seller, so it makes a lot of sense to use an estate agent who has years of experience in the property market. Not only will they have insight into what property you can afford, but also the location, any future development plans for the area, as well as be able to advise you on faults and defects.

 

 

An older home may require the removal of hazardous materials such as asbestos.

 

 

 

 

A home inspection company will be able to assess any damage to a property that requires immediate attention.

 

 

 

Proper Inspection is Essential

Once you sign the documentation, you are committed to purchasing a property, but what if that property is not what you thought and there are defects that you didn't pick up during the initial or even second walk-through. Depending on the age of the property and whether it is a new build or an existing property, you may discover faults that are not easy to rectify or repair.

 

 

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• An existing property

When inspecting an existing property, you need to do your research and some homework. Make a list of what you need in a property and what you want. Your needs will obviously be the most important, but your wants will help you to select that dream home. However, it is in your best interests to not just look on the surface but also examine the property thoroughly. The estate agent should advise you on any defects on the property, as these must be made known by the seller. Knowing the faults that exist will enable you to budget for any repairs or renovations that need to be done to put the property to rights.

Having said that, you may be informed of known defects but there remains the possibility of there being unknown defects. For those who do not feel capable of performing a home inspection on their own, several companies specialise in this and will inspect a property before you purchase and provide you with a detailed report.

 

 

 

 

 

 

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• A new build

When buying a property that is still in the development stage or even one that is almost complete, you need to be aware that you are buying something sight unseen and not finished. This, in a way, can be even more of a challenge than buying an existing home where you can see most of the defects, but since considering the property has not yet been built or only partially constructed you do not have the same amount of control. You know the location, but you may not be aware of any future developments that may affect the resale value. Due diligence is vitally important before making any commitment so that you are at least aware of what the future might hold.

An advantage of buying your first home off-plan is that you get to choose the finishes for the property, and this works in your favour. But a disadvantage of buying off-plan is that the developer usually controls who supplies the services and that ultimately means that quality control is out of your hands. Discuss any special conditions with the developer before you commit yourself to the deal.

 

 

 

 

 

 

 

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