31/07/2023 by Team Concepts 0 Comments
Top 5 most common mistakes when searching for a property
Searching for your dream home? In this article, we're tackling the top 5 most common mistakes people make when searching for a property and how to avoid them. Keep reading to find out.
Are you buying your first home? There’s a lot to consider before buying your dream home. Here are the five most common mistakes to avoid.
NOT DOING YOUR RESEARCH
It’s easy to go down the path of someone you know or pick something like a mortgage based on an advertisement you’ve seen a thousand times. This may not be the right path for you, though. Shop around!
Don’t just look at different properties in different locations, look at different mortgages, at different mortgage lenders. Make sure you understand every little detail, from purchase costs to sustainable mortgages to construction deposits (bouwdepot).
Better still, book a meeting with an independent mortgage advisor and let them help you find the best mortgage for you!
FORGETTING THAT EXPENDITURE IS MORE THAN JUST THE HOUSE
Owning a home has more expenditure than new homeowners tend to think. It’s not just the cost of the house you’re buying. It’s the cost of the mortgage, the leasehold (where applicable), the monthly homeowners’ association (VvE) fees, the price of renovations (where applicable), the cost of the technical inspection, insurance, water and garbage tax, property tax, and so on.
Not all of this expenditure is a one-off payment, either. One of the biggest mistakes new buyers make is forgetting all this and setting an unreasonable budget without any breathing room. It often leads to disappointment when the mortgage application comes around. This is where independent mortgage advisors can be of real value.
They can help you calculate how much money you’ll need for each stage of the process – from mortgage to renovations and everything in between – determine your budget, and help you search the market for the best mortgage for you now and in the future.
TRYING TO CUT COSTS
It’s understandable that first-time buyers want to cut costs where they can but, more often than not, they cut the wrong costs. Picking a property that needs work because it’s cheaper, and trying to do the renovations without the help of professionals, are both common mistakes. In the long run, you may be spending far more money fixing up your new home than if you were to just spend that little bit more when purchasing it.
Independent mortgage advisors help you determine what you can afford, compare multiple mortgage products from multiple mortgage providers to find the best match for you and provide you with clear information on all your options without bias.
A little bit of extra spending now can help you save a fortune in the future.
FOLLOWING EMOTIONS INSTEAD OF LOGIC
It’s easy to get caught up in a house that isn’t practical. To get excited during a bidding war and pay more than you’d planned to, or to get frustrated by the process and give up.
It’s also easy to fall in love with a house’s location, layout, and furniture without remembering that the house is staged to show you your dream home. Think things through! Look past the façade. Don’t make decisions based on your emotions alone.
NOT TAKING THE FUTURE INTO ACCOUNT
No one knows what the future will hold, but if you’re buying a property, you likely have a 3-, 5-, or 10-year plan for your life. Perhaps you want to get a dog in the next few years and know that you prefer a larger breed rather than a small one. Maybe you want to start a family one day soon. Your parents may be getting older and you’re thinking about having them move in with you if things get too much for them living alone. These are all things in the future that you ought to be considering now.
Buying a property is very different from renting, you’ll probably stay much longer in a property you own than a property you rent. Don’t buy a property just because it fits your needs at this very minute – think about whether it will fit your needs in the coming years too.
The buying process isn’t something you have to do alone. An independent mortgage advisor can be a huge asset when making some of the decisions you need to make. If you’re not sure where to start the process, contact me for a free consultation to find out where to start.