Buying a home is a big decision.
Saving a deposit to buy in one of our capital cities is a lengthy process, and requires discipline and patience.
Arranging finance, researching an area, attending inspections and working with a real estate agent to find a suitable property are time-consuming activities.
If you have found a home that appears to ‘tick all the boxes’, think about the following questions before you sign any paperwork or take out a loan.
Assessing your situation will give you clarity on whether buying a home is the right move and could save you ‘buyer’s remorse’ down the track.
It’s Not As Good As You Think It Is
You have found the home of your dreams – it has a new kitchen, beautiful garden and is painted in your favourite colour.
First impressions can cloud your judgment when it comes to seeing a property’s flaws.
Is there suitable parking, enough storage? Will there be noisy neighbours, a traffic-choked street or developments going up that will cause endless disruption and eventually ruin the view?
Before you start looking, make a list of ‘deal-breakers’. Serious issues with wiring, foundations, water leaks, groundwater and serious structural defects can turn a dream home into a nightmare very quickly.
If the property has too many deal-breakers, it may end up breaking your heart – and your bank account – once you are the new owner.
A pre-purchase house inspection is essential at this stage to get the full picture of the property’s condition and to identify any defects that may prove costly to repair.
Termites can cause extensive damage -that’s why a pest inspection with a qualified operator before you buy is crucial.
If your pest inspector’s report lists serious damage, think carefully about buying the home – consider how expensive and disruptive it will be to rectify the damage and what effect this may have on the property’s resale value. Sellers must disclose termite problems at a property if they are aware of them.
You Can’t Afford It
Interest rates are currently at historical lows and there are a number of government incentives in play to help more Australians buy a home.
While these things help, there is no getting away from the fact that buying a home in Australia requires a big financial investment.
To avoid mortgage stress, you should not be paying more than 30 per cent of your household income on home loan repayments.
Take into consideration your income, job stability, the length of your mortgage and your overall lifestyle before committing to a large loan.
You Have FOMO
Huge competition and a lack of supply is pushing up house prices in our capital cities at the moment.
People who are desperate to find a property in their ideal location are paying well above the reserve price in an effort to get a foothold on the property ladder.
Take the heat out the situation – step back and ask yourself if the home you are about to buy or bid on really meets your needs, or whether you are paying over the odds in a red-hot market.
You Love it But Will Eventually Outgrow It
You have may have found the perfect home – for now.
Starting a family, taking on caring duties for elderly relatives and other life changes may mean you quickly outgrow your home or that it no longer meets your needs. While it’s impossible to predict the future, having a plan for what your life may look like in the next few years will help you decide if a property is right for you in the long term.
You Don’t Know the Hidden Costs of Home Ownership
While saving a deposit for a home can seem like a mammoth task, the costs of owning a home continue after you sign off on your home loan.
Owning a home means budgeting for expenses that go beyond a deposit and mortgage.
Home and contents insurance, home maintenance and repair bills, rates, utilities, body corporate/strata fees and ongoing upkeep to preserve the value of your home can make a big dent in your budget.
If the costs of home ownership create a financial burden, no amount of great features can counteract the stress.
Confident you have found the right home?
A small investment in a building and pest inspection can give you the confidence that you are buying the right property.
The Home Inspection Hub offers a range of quality residential building inspections across Melbourne, Geelong and Central Victoria,
We arrange pre-purchase house inspections, building and pest inspections, owner builder defects reports, new home construction inspections, special purpose inspections and special purpose inspections.
Alongside these we offer more specialised services such as VCAT reports and expert witness, contract review and tax depreciation schedules.