Common pitfalls for first home buyers and how to avoid them
Buying your first home is an exciting time in any young person’s life, but it can also be quite daunting when you don’t know what to expect. It’s likely going to be the biggest financial transaction you’ve made in your life, so it’s important to be well prepared and educated when it comes to making a purchasing decision. Here are some of the common pitfalls we see with many first time buyers and how you can avoid them.
Not being prepared
When looking to build your first home, it always pays to be prepared. Start by doing your homework. Be proactive and conduct some of your own independent research so when you reach out to a new home expert and talk all your options over with them it won’t seem as daunting.
Assess your finances
First and foremost, you need to understand your financial standing. This will include analysing your assets and debts (Car loans, credit cards, etc.). Don’t forget to take advantage of the First Home Owner Grant. This is a government initiative to assist people in buying their first home in Australia and can save you thousands in duties and fees. Remember, every little bit counts towards getting you into your dream home.
Once you’re familiar with your finances, you can assess your lending options. At Now Living, our partnership with The Loan Company provides you direct access to a variety of loan options suitable to First Home Buyers, as well as professional home loan advice tailored to your individual circumstances.
Assess your needs
It’s also important to think beyond the home. Remember, you’re not just buying a house – you’re buying a location. So get to know your neighbourhood a little better before taking up permanent residency. Some initial questions to ask yourself are:
- Is there adequate public transport?
- Is there quality schools?
- Are there shops nearby or coming soon?
- Is there infrastructure or building developments near the property?
Going over budget
As a first time buyer, it’s important to not buy beyond your means. Knowing your financial position and budget beforehand is really important as it will allow for you to choose a home that’s affordable and in your price range so you won’t be in over your head once you’re in.
Don’t stretch your budget
When it comes to choosing a home, be realistic about your needs and stick to your budget. The best way to avoid overextending is to have a firm grasp on your current incomings and outgoings. If you know exactly where your money goes each month, before you buy, you’ll be able to plan an affordable repayment strategy.
Don’t underestimate costs
There may be some extra costs involved when you buy a home. Many homebuyers aren’t as prepared for these extra fees such as stamp duty & council rates. This is another reason it’s best to engage a new home and finance expert early on.
It’s also important to factor in for changes in your future circumstances such as family planning or job changes. Not to forget the ongoing costs of upkeeping your new home. Some of the additional costs to consider when buying a house are:
- Home insurance
- Inspection reports
- Council rates
- Moving costs
So make sure you’re budgeting for these extra costs, so you can enjoy your new lifestyle without any nasty surprises.
Choosing the wrong home builder
Don’t do it alone
As a first time buyer, you shouldn’t face the home purchasing process alone. At Now Living, we specialise in all-inclusive, move-in ready homes in a range of Perth suburbs. And with access to a wide range of industry partners, we’ll guide you every step of the way throughout the buying process.
So talk to us and we’ll help you figure out your budget, get your finances organised and talk you any current and future considerations.
Some of the main reasons that set us apart from other home builders are our guarantees of:
- More stability and less uncertainty: To make your life easier, every single one of our homes is an all-inclusive house and land package. This means when you build with us there’s no nasty surprises or hidden costs waiting for you at the end.
- A home you’ll love from the moment you move in: When we say everything is included, we mean it. From the flooring and finishes to the painting and clotheslines, all the details are taken care of in the initial all-inclusive price*.
- A simple, streamlined process: Our team of industry professionals take the hard work out of building a new home for you. From the location and functional needs of the interior and exterior finishes, we make the complex decisions easy and ensure your home is delivered professional, on schedule and hassle-free.
- Being backed by experience and expertise: As part of WA’s largest home builder, BGC, Now Living shares in a 55-year strong mission of providing Western Australians with innovative and affordable housing solutions.
Sometimes we all need a little bit of help. At Now Living, we live to help. Get in touch for more information today.