Buying a home is a big financial decision. Going into the process blind can lead to some very unfortunate outcomes so your best bet is to arm yourself with knowledge and be prepared for anything.
Here are a few things to consider before buying a home.
Don’t over-extend yourself financially
As a homebuyer, one of the worst situations to find yourself in is being financially stretched. Before you commit to anything it’s important to realise that variables such as interest rates or fees may rise at any time. Sit down, make a budget and work out a few contingencies.
Organise a pre-settlement inspection
When you’re buying a home, you should consider building inspections mandatory. You may want to try to speed up the process (especially if you’re feeling pressure from family or your agent) but skipping them could land you in a lot of hot water.
Research the area
You may be in love with your future home, but will you still love it if the neighbours are ‘characters’? A lot of home buyers don’t check out the neighbourhood they’re moving into and they pay for it later. A couple of good tips are to:
- visit the property at different times of the day – your house may be a short-cut route for peak hour commuters for example
- take a walk down the street to get a feel for your neighbours
- find out how close public transport, schools and shops are
It’s also a great idea to check with the local council to see if there are any future developments being planned for the area.
Think about resale value
Chances are you won’t be spending the rest of your life in your new house, so considering the resale potential of a property is a good idea. You should:
- Find out what other properties in the area have sold for
- Steer clear of outdated features – you may love the ‘retro’ feel of the house but can you be sure other buyers will?
- Location is always a big factor in terms of resale. Talk to your agent about the suburb’s future potential
Buying a home is a big deal. Like everything in life, the process will go smoother will a little bit of planning and forethought.