Big mistakes first home buyers must avoid - 1

Buying your first home has always been one of the highlights of many people’s lives.

It’s something that they’ve dreamed about and had to make sacrifices for to make it a reality.

The thing is buying your first home is often imbued with emotion, which is understandable, but it’s not necessarily the best thing when it comes to property investment strategy.

So here are big finance mistakes that most first home buyers make.

Avoid Buying emotionally

The most important thing to understand with your first home is that it won’t be your last, which is why you must use it as a stepping stone to your next property.

That way, you can use your very first home to build your wealth.

You should choose a home that will suit your family and lifestyle needs but one that will also appreciate in value over time and become an asset rather than a liability.

One of the ways to do this is to choose a great location because it will do 80 percent of the heavy lifting with regards to capital growth for you.

The next key step is not to overpay for the property in the first place, which is another issue with emotionally laden purchases like your first home.

At the end of the day, the entry and exit costs when buying property are high, which means mistakes – such as paying too much – can be costly.

One of the ways to prevent overpaying is to get professional advice beforehand on the market value of the property you’re buying, otherwise, you may fall prey to sales agents who are not only more experienced than you, they are also better negotiators.

You also must never let Fear Of Missing Out (or FOMO) be a reason to buy a property, because it will often lead to paying too much and potentially for an inferior home to boot.

Likewise, being too exuberant when negotiating to buy a property will generally just lead to making expensive mistakes that can take years to unwind.

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Jason Gwerder
Monday, 25 October 2021

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