You need two essential skills when buying a property: the ability to recognise the home of your dreams when you see it and, to stay within budget.
If you believe that’s pretty straightforward, think again. Too many buyers enter the market without finance in place or clarity around what they want to buy.
The idea that you’ll immediately recognise your dream home often leads to buyer’s regret; a mistake that costs tens of thousands of dollars in taxes and expenses if you decide to sell and start again.
It’s also important to assess your circumstances before diving into the property market.
If you’re not sure where you’d like to live, either the right city or a neighbourhood, then you should pause your plans until you’re clear on this most basic of property criteria.
Also, ask yourself if you’re ready for a mortgage and the maintenance costs of a house or the strata fees of apartment living.
These tips may help if you are looking for your first home:
Checklist
Write down the must-haves and nice-to-haves you want in your dream home. That way, you’ll have a much better chance of recognising a suitable property.
Finances
Organise a mortgage pre-approval before starting your search. You’ll know your budget and be able to move quickly when you find what you want.
Location, location, location
Be aware that the financial commitment of ownership may not make sense if you’re uncertain of where you’d like to live or where your career may take you next.
Other costs
Are you ready financially? It’s not just the mortgage payments that hit the hip pocket. Other costs associated with property ownership, such as insurance and maintenance, add up.
Your strategy
Property is a great investment, but it’s a long-term strategy. If you intend to flip a property every couple of years, you need to plan that strategy carefully.