Buying a home is one of the biggest financial decisions you can make.  But when you’re in the market for a new home, how do you know whether you’ve found ‘the one’?  Ensuring that you make the right decision when buying a home is an important decision both emotionally and financially.  Given the financial and emotional expense involved in buying the wrong property, it pays to get it right the first time.

Many of our financial planning clients who come to see us are interested in purchasing a home – either as first home buyers, or current homeowners looking to upgrade.  Over many years, our Sydney financial planners have seen two very common mistakes that people make when buying property:

 

Property purchasing mistake #1:  Buying the wrong property out of frustration

Property hunting can start out as an exciting task.  You spend most of your spare time on the weekends and evenings trawling the latest property listings looking for the property that fits the bill.  Then comes Saturday morning and the task of driving around looking at potential properties at the open houses.  Very quickly however, the process of finding the right property can turn into a real chore, particularly if you have a pressing need to find a new home by a certain date (e.g. where you have already sold your current home, or are expecting a new baby).  This is when things can get frustrating, and buyers are lured into mistake number one – buying the wrong property because “it will do”.  This situation is a bit like that older couple you know who really shouldn’t have got married all those years ago, but they settled for each other, and it’s been years of misery ever since.  Aspects of a property that aren’t quite right for you can be overlooked if you’re fed up with the property search process.

If you’re on the hunt for a property and you find yourself getting fed up with the process, STOP!  Feeling frustrated is a key sign that you’ve been looking for too long.  Take a break from the property hunt for a while. Remember that it’s better not to buy a home at all than to buy the wrong one.  Renting temporarily will be a far cheaper option than purchasing the wrong home that you later need to sell.

 

Mistake #2: Moving too slow on the right property

At the other end of the spectrum are those of us that are too cautious once the right home has been found.  Purchasing a home is a big financial commitment that should not be rushed into, but if you believe you have found the right one, you should not move too slowly or you may risk losing it to other buyers.  This is particularly true if you have specific criteria that make a property a little more unique.  This mistake is more common when buyers stumble upon the right property early on in their property search.  They are often lulled into thinking that finding another similar property will be an easy process.  Often it’s not.  If you happen to find the right property that fits your criteria, it’s in your budget and you’re ready to buy, you should think long and hard about letting it pass you buy.  There is no guarantee that another one will come along that is right for you in the near future.

 

Get professional help finding the right property for you

On the lookout for a new home or an investment property?  Our financial planners can assist you in sourcing quality properties.  We also have an in-house mortgage broker with access to over 30 different lenders.  Give our friendly financial planning team a call on 1300 886 018 to arrange your complimentary first financial planning meeting in Sydney and see how we can assist you to making the right property purchasing decision.

 

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One Response to “The Top 2 Mistakes When Buying a Home”

  1. Mel May 4, 2012 at 11:10 am #

    Buying a property is an emotional process as you have highlighted, whether it is for investment purposes or for a home.
    It’s important to understand all the different factors included in the process; the deposit, stamp duty, solicitors, application fees, etc. If the right property has not come along, there are other options available, for instance buy to rent if this is a feasible and suitable option.