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Devastating mistakes first homebuyers must avoid
5 January 2010
One bad mistake when purchasing your first home can be financially and emotionally
devastating, so first homebuyers should learn from the mistakes of others rather than
falling into the same traps. Australian Property Investor editor Eynas Brodie says
first-time buyers typically make mistakes because of their relative inexperience in the
property market.
“First homebuyers sometimes overlook simple factors, listen to people they shouldn’t
listen to, or allow emotion to rule their purchase decisions, all of which can lead to big
mistakes in the purchase process,” Mrs Brodie says.
Four of the worst mistakes first homebuyers make are:
1.
Assuming interest rates will stay low
“Interest rates have been at historic lows in response to the global financial crisis, so
first homebuyers need to understand that rates are now back on the rise and factor
that into their budgets,” Mrs Brodie says.
2. Short finance clauses
“Lending institutions have been taking longer than usual to process applications for
loans, which can leave buyers high and dry if they have 10-day or 14-day finance
clauses in their contracts of purchase,” Mrs Brodie says. “It would be a mistake to
sign a contract assuming you’ll be able to get an extension on the finance clause.”
3. Assuming you’ve got bank approval
“Just because your lender has given you a verbal indication of how much you can
borrow, or because you’ve checked out your eligibility on a website, that doesn’t
mean your finance is locked away,” Mrs Brodie says.
4. Going beyond your budget
“Don’t be tempted to push beyond your means just because the house you have your
eye on has a bit of ‘bling’ in the kitchen or fancy tiles in the bathroom,” Mrs Brodie
warns. “These features might be attractive, but don’t let your heart overrule your
head when it comes to deciding how much you can afford to spend.”
Australian Property Investor’s January edition includes five more mistakes first
homebuyers should avoid making.
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FOR FURTHER INFORMATION, INTERVIEW CONTACTS OR PHOTO
OPPORTUNITIES:
Please contact Eynas Brodie
Editor, API
W: (07) 3720 9422, E: editor@apimagazine.com.au
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