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
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
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
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
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Monday, 25 October 2021