It’s quite likely that purchasing your first home (often with a mortgage-backed loan) will be the largest financial commitment you have ever made thus far. That’s quite normal and natural, and of course, it’s a wise part of life planning for many people.
However, it’s important to note that in any purchase, the chance of making a mistake, missing an opportunity, or simply joining a bad deal is always possible.For this reason, purchasing property needs to be a wise, verified decision where all of the surrounding contractual obligations and inspected value is approved before you move forward. The more confident you can be here, the better off your peace of mind will be in the long term.
Note that financial mistakes aren’t necessarily the same thing as being caught out with a lower-value investment. For instance, if you purchase a home only for the property market to reduce in price significantly two months later, that’s not exactly your fault. So – some leeway is essential here.
Let’s consider three essential mistakes most commonly made when purchasing a property.
Neglecting To Use A Mortgage Broker
Mortgage brokers provide an essential service in that they can help ascertain the best deal available. In some cases, this may be appropriately lined up with your career, for instance if you’re part of the armed forces or you’re a teacher, doctor or nurse, you may find that subsidized offerings are available or specifically configured lenders are more willing to give you a great deal. Sure, mortgage brokers require fees, but the potential long-term commitment they could find for you will pay for itself countless times over.
Taking The Same Approach To Each Property
Properties are often similar, but rarely perfectly alike. For example, the maintenance measures, fees, and value of a waterfront property will be much different to a regular residential street – and may have public footway access or public fishing access as part of the housing stipulations, or the zoning measures regulated by the local authority.
Taking the same approach to each property means you may not be truly aware of the consequences of each investment – for example investing in a house of multiple occupancy for renting out to tenants often requires much more strict housing authority regulations for fire safety – which may lead to further internal renovations needed. Always consider the category and utility of each property and why it matters.
Not Inspecting The Real Estate Thoroughly
A house inspector is worth its weight in gold. Even those with stringent experience in the property market can miss certain dealbreakers, especially if they’re being deliberately hidden – like subsidence, foundational movement, or even dampness within the crawlspace under the basement.
A home inspector, and even two competing inspectors, can be a worthwhile use of your time. They can help you back out of tough deals, or give you the all-clear which helps your investing peace of mind..
With this advice, you’re going to avoid financial mistakes when purchasing property, so you can go ahead with your worthwhile plan, or enjoy diving into the property market for the first time.