Home Buyer Pitfalls – 4 quick home tips

By Amanda Amey
In Home Loans

With the promise of fresh flowers and brighter days comes the guarantee that more properties will hit the market.  Spring time is selling time!  Do you know what experts are recommending for the selling season in your area or are you caught up in ‘FOMO’ (fear of missing out) mode? Have you done enough research?

With constant reports of the market dipping/holding/increasing (no one can seem to make up their minds), it starts to get confusing for all those first home buyers waiting in the wings to snatch up that bargain property this year.

One of the major pitfalls in buying your first home is E-m-o-t-i-o-n.  Not only do we want to please ourselves and those around us, but  FOMO is more than just a social media term but a realistic emotion that we all, unfortunately, do feel.   The thought of missing an opportunity is almost more daunting that than the thought of buying at the wrong price, or buying in the wrong area.  There’s that margin of “that won’t happen to me” as long as I “buy now”.

A long time ago, my hubby and I were keen to buy this swimming pool business.  We had assessed the premises, the financials, the clientele and, what we thought at the time, carried out an astute business analysis.  That elated feeling of ‘owing our own business’ , although premature, was almost tangible.  “We were doing this, and nothing was holding us back”.

Not until dad’s simple words echoed in our minds “and when you hand over your money, all you get is a key,  The rest is still up to you to make it work……”

The same applies to buying your first home.  Don’t get caught up in the hype of what the Joneses think, or what the agent tells you. You are the one left holding, not only the key, but the mortgage that goes with it.

More reason to ensure that when you enter into this daunting process, you have someone who understands property and real life living, as much as they understand simple mathematics.

Before we look at the seven straight forward steps to saying goodbye to debt (and hello home loan) lets touch on the four basic buying elements to help you make some educated choices.

 

  1. Appearances can be deceiving

Be careful not to look at presentation alone.  If you speak with designers and interior decorators you’ll soon understand that aesthetic appeal is a sellers’ strategy.    It’s sometimes said that buying a messy home and having the ability to look through the blurrr like your competitors CAN’T, can actually help you negotiate a better deal.

I took a photo the other day of an absolute gorgeous living room.  The colours were in sync, (although back in my day, teal and orange weren’t exactly complementary) the fluffy cushions brought the raw brick feature wall to life and the small glass ornament next to the settee hid the unsightly TV outlet magnificently (to the untrained eye of course).

I opened a cupboard in the hallway and let’s just say that being knee high to a grasshopper was to my advantage this time around.   Nothing actually hit my head. The cupboards were so jam packed with real life living, it occurred to me how the property had been presented was unrealistic and quite frankly, downright simple.  Not even a TV remote in sight, or a family portrait to compare my gorgeous family to.   “Once I move in here, this place was going to be far too small for my home style living”.

Consider your own sized furniture, style, colour palette and décor before falling victim to your seller’s strategically interior designed home.  Remember to look beyond.

  1. Size does matter…. But I’m talking about the mortgage

Yes, size does matter.  No one wants a small pokey passage way, or a living room that you can’t swing a cat in.  But, be careful that you’re not simply living up to the Joneses.  Aunty Mary and cousin Molly aren’t really planning a regular visit when you buy your own home and having a big four bedroom home is perhaps confusing your mortgage with someone else’s holiday fund.   Buy what you need, because the mortgage doesn’t differentiate between what you need, want, or promise.   It’s there to stay, so buy within your means.

  1. Location is not a myth

Location is more than the locality to your nearest pub or best friend’s place for that Friday evening wine.  It’s important to #Love where you Live but remember to consider future resell value and key factors that will help add value to your property in the future.   Bricks and mortar depreciate, but it’s making the right choice on land value that helps capital gain, through capital growth.  Things to consider may include proximity to the local school, the local shops and public transport.  What will the traffic sound like on a rainy day, or in peak hour or at school pick up.  What does the street parking look like on Saturday afternoon. How close are you to the nearest beach, or park?

  1. Lifestyle is the way in which you live

Lifestyle changes can be difficult. Be realistic about the cost cutting you intend to do around your weekend entertainment, beauty routine and overall spending habits.  Cutting back is possible and more often than not, definitely required to meet the lender’s repayments,  but even more to the point, #stay true to yourself.  Perhaps you’ll need to consider compromises to ensure longevity of the new and improved home owner you’re becoming.  In simple words, sometimes you can’t have your cake and eat it too. So if you’re a surfer and a beach lover, perhaps you’ll need to consider a smaller apartment to stay closer to the beach.  If your dog is your world, perhaps your best friend, finding that home with a secure little garden may mean the need to consider a different location.  As much as we all want a bargain, as does a serious seller need to meet the market, so does a serious buyer need to be realistic about their expectations within their borrowing capacity.

And now that I’ve set you up to do a little more homework about the property you buy, I want to take the pain out of the mortgage you use.

With hundreds of products on the market, and crazy words like offset accounts, redraw facilities, family guarantees and split loans it’s no wonder it becomes a minefield for those a little faint-hearted.

Give Amanda a call today for a free no obligation chat ph: 0409 715 577    Perhaps a pre-approval is in your sights?

 

What our clients have to say : 

5 stars Courtney Curtis “Amanda is amazing! Our loan is approved because of her hard work and industry knowledge as a broker! Our family is forever grateful and ever so happy to be in our own home. Amanda has our full recommendation.”  

5 stars Jess Gallagher “I can’t thank Mandy enough for navigating me through the process of my first home loan.  She made this process as smooth as possible, was easily approachable and always made herself available. I have no hesitation in recommending Mandy”

5 stars Lauren Croudace “It was an absolute pleasure having Amanda as our mortgage broker.  We were unfamiliar with the real estate market and processes and Amanda went above and beyond for us.  If you’re looking for a mortgage broker who is personable and professional we highly recommend Amanda”

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