Posted On : March 4, 2018

Five biggest property buying fails

PURCHASING a property is no easy task — there’s the house hunting, the securing of the mortgage, deciding whether it’s an investment or forever home, and the countless people trying to tell you their opinions.

So it’s no wonder that property buyers — particularly first home buyers — can fall for some common mistakes.

Here are five of the most common mistakes buyers make, according to Universal Buyers Agents Director Darren Piper.

1. Falling in love

Mr Piper said one of the biggest mistakes buyers make is falling madly in love with a home, and getting emotionally invested.

“Once a buyer starts making decisions with their hearts instead of their heads, that’s when they pay too much for a property, overlook important issues, and desperation kicks in, clouding judgment,” he said.

Mr Piper recommended, particularly for first home buyers, that enlisting the help of a buyers agent could help avoid this trap.

2. Paying too much

The sort of money involved with buying property is far greater than most other purchases in life.

So much so it can almost begin to feel like Monopoly money, and it becomes all too easy to expand your price range just a little, just in case your perfect home is waiting for a few thousand dollars more.

“This is when a buyer will fall in love with a more appealing home that is just too expensive, and desperation kicks in,” Mr Piper said.

Mr Piper said buyers should also be aware of “real estate agents who might talk you into buying a home outside your price range, which could derail your finances in the future.”

“Don’t be tempted — spending more than you need to leaves you vulnerable to potential financial shocks, including rises in interest rates or changes in future circumstances,” he said.

3. Not doing your research

The home may tick all the boxes, but failing to research the area is a big mistake that could lead to a life in a great home, but in a terrible area.

Mr Piper says it pays to get to know the neighbourhood you are potentially going to spend the rest of your life.

“Research nearby schools; find out about any current or future developments; make note of public transport; and make sure you check out the local crime rates,” he said.

“A buyers agent often has an intimate understanding of property trends in each suburb, and knows all about council regulations, possible plans for redevelopment and median house prices in the area.”

4. Failing to prepare

The smart homebuyer will make sure they have assessed finances and needs before making the househunting plunge.

“It’s important to analyse assets, organise debts, and get pre-approved for finance before starting the journey,” Mr Piper said.

“When purchasing a property, there are many things to think about, and some of these may be a surprise to first homebuyers.”

5. Underestimating costs

There are more costs involved in purchasing a property than just the property itself.

“Often, buyers fail to take into account building inspections and reports, strata reports, pest inspections, and council inspections,” Mr Piper said.

“There are also additional costs involved after you purchase a home, including insurance, moving costs, inspection reports, stamp duty, council rates and transfer fees.

“A buyers agent will not only keep a buyer up-to- date with any expense that may arise, but they also have an extensive list of contacts built up over time.

“This includes real estate agents, other investors, business owners and associations, as well as building and pest inspectors, mortgage brokers and conveyancers — making the whole process a breeze.”

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