Watson Real Estate
Top 5 First-Home Buyer Mistakes to Avoid
Dream home in mind? Don’t let overlooked details or market pressure lead to costly regrets—learn what to avoid before you buy.
02 May 2024
1. Not looking at all your options
Buying a home can be a smart financial move—but it’s not right for everyone. If you only plan to live there for a year or two, the costs (like interest, legal fees, and selling expenses) might not be worth it. And if the market isn’t rising, you might not gain any value from the sale.
2. Forgetting about costs beyond the deposit
Many first home buyers focus only on saving a deposit and covering the mortgage. But owning a home comes with other costs—like insurance, maintenance, and council rates. These can add up fast and put pressure on your budget if you’re not prepared.
3. Skipping the building inspection
Some buyers skip a building inspection to make their offer more attractive. But this can backfire. An inspection can uncover issues that might cost thousands to fix. It’s better to know what you’re buying so you can plan ahead or renegotiate.
4. Assuming the home’s value will go up
A lot of buyers expect their home’s value to increase quickly. While this can happen, it’s not guaranteed. And because property isn’t easy to sell quickly, it’s risky to put all your savings into it unless you’re in it for the long haul.
5. Not checking debt and credit first
Before talking to a lender, check your debt-to-income ratio. If you have too much debt, you might not be approved. Showing a history of saving and keeping your credit score healthy can really help. Even with pre-approval, you’re not guaranteed the loan—things like lending criteria can change.
Final Tip: Talk to a professional
Buying your first home is a big step. It’s important to get advice from a trusted real estate agent. They’ll help you understand the market, keep up with price changes, and guide you through the process. Don’t rely just on property websites—get support from someone who knows what they’re doing.
