5 mistakes to avoid when you buy a block of land

Buying your first house is a massive step in any person’s or couple’s life. That first block of land that signifies your absolute transition from young adult to fully fledged mature human. But there is the danger of making mistakes which can set you on a financial slippery slope that is near on impossible to get off. So once you’ve finished buying extraordinary amounts of smashed avocado and you start thinking about purchasing your first house make sure to read this list below of  five mistakes to be wary of when purchasing your first home.

1. Not doing enough research…
This is the most common one and clearly the most important. Not only do you need to do research into your prospective neighbourhood in regard to schools, crime, transport, but also into your own finances. You’ll need to check out your assets, debts and ensure you are pre-approved for finance before you even begin your hunt. It’s also important to do your homework on those who built the house. Ensure you are getting what your paid for, and not something that may begin falling apart within the first few years of your tenure.

2. Check out your credit and take the loan process seriously

It’s really important that you, firstly, purchase your own credit report. A credit report is a basic document which details your previous financial activity. This credit report is one of, if not the most  important document when it comes to securing your loan. More or less, one in ten Australian citizens have a negative listing, which stops them from receiving a loan. It’s also important to make sure you don’t bite of more than you can chew when it comes to your loan. In order to gain the biggest loan, try not to take out any other loans, or make any large investments before applying for your mortgage. Actually to be safe, just don’t apply for any credit at all.

3. Don’t be to subjective…
Sometimes we can fall in love with the look of a home or one of its specific features, i.e. the bathroom. And just like in a relationship, we can turn a blind eye to some of the obvious flaws. Things like cracks in the wall, and out of date roof, mouldy shower tiles and so on. Ignoring these flaws could become a big financial nuisance in years to come. Become infatuated with a house can also lead you to ignore your own budget. Make sure that you keep a good poker face to ensure you don’t get played for a fool in the negotiations, and it’s a good idea to have someone who is completely objective with you so they can point out those massive red flags. It’s also important to get things such as a pest and building inspection before you sign on the dotted line.

4. Forgetting the additional costs…
Homebuyers often fail to remember that there are extra costs after you’ve bought your dream house. Things like; Home Insurance, Moving Costs, Inspection Reports, Stamp Duty, Council Rates, Transfer Fees and many more. This does not even include those unwanted surprises that will require repair, that you’ll no doubt find on closer inspection of the house. Make sure you allow for this when developing your budget, nothing worse than buying a house and then not being able to live in it as you wish.

5. Going alone…
It’s a tough, mean, harsh world out there. Especially in the real estate world. It’s important that you arm yourself with a strong dependable and knowledgeable teammate. Remember that those selling houses have their Real Estate Agent on their side, working for what they want and advising them. You can read as many articles and watch as many shows on the topic as you want, but your emotions will no doubt cloud your judgement (much like in point 3). With the amount of risk that laces each decision in the process of buying a home it is vital that you have the resources to make the right decision. It’s a good idea to engage with a buyers agent who can help you along the way. Do not sign anything at all unless your lawyer has checked it out!

There you have it. Wollerman Shacklock’s five mistakes to look out for when buying your first (or any) home. Now of course, we can help you along the way as well, and if you’d like our help you can contact us either by email (admin@wslegal.com.au) or on the phone (03 9707 1155) to have a chat and organise a meeting before you launch into the scary world of real estate.

Sources: PropertyUpdate.com.au | MilitaryByOwner.com | Domain.com.au | YourMortgage.com.au