Real Estate Mistakes - 4 Easily Avoidable Real Estate Pitfalls

Looking to get into the real estate market, either for home ownership or investing? You’d do well to avoid these 4 mistakes that “real estate rookies” often run into.

Getting Emotionally Involved

Though difficult, you need to look at what you NEED in a property and have a budget in mind, otherwise you’re susceptible to “falling in love” with a house that is outside your budget. Sure, you can technically “afford” that dream home, but you’ll be stretching yourself to the limit - and all it takes is one unexpected expense and the house of cards will come tumbling down. Give yourself a sober dose of reality by asking the question, “what’s the absolute worst thing that could happen? Interest rates go up? Lose my job? Would I still be able to afford this property?” Buy a home that is practical and affordable, you’ll thank yourself later.

Skipping the Inspection

Before you purchase anything, make sure that you get independent advice from a building inspector and a pest inspector - “independent” meaning “not recommended by the agent”. No offense to real estate agents, of course. :)

Not Researching the Area

Make sure that you completely scope the suburb and surrounding areas of your potential new home/investment - is it close to things like schools, entertainment, etc? Does the area have future growth opportunities? Do you LIKE the area? Make sure you are completely comfortable with the suburb before deciding to move there.

Ignoring Other Costs

Remember that when you’re buying a property, the price you pay for the property isn’t the final amount you’ll pay. Stamp duty, new furniture, insurance, council rates and other expenses can quickly add up on top of what you’ve already spent on the place. If you build these expenses into your estimates then nothing will surprise you.

Resources

First Choice Loans is a mortgage broker in Perth who specializes in home loans, business loans, investment property loans and more.