First Home Buyer Jitters?

Many people who would like to own homes have fears that prevent them from buying. Buying a home is usually the largest purchase a person ever makes so you have to take it seriously.

If you’re one of these people who are hesitant and have been sitting on the fence – there are simple steps you can take to overcome your fears and become confident that you will make a sound purchase. Here are the top five reasons you may be holding off on purchasing a home and how to overcome these fears

Fear #1: What if properties drop in value?

Yes this can happen.  In fact it also happens to your car, but unlike with a car over time property gains in value.  Just ask your parents what they bought their first house for and what they sold it for.  They went through these exact same concerns as you are, homes can decline in value, even without a disaster. But you can take precautions, like buying in areas where the homes are well-kept, primarily owner-occupied and with high-quality schools nearby.

Fear #2: Overwhelming Maintenance Costs

All homes need maintaining over time. If you become a homeowner, you won’t be able to avoid these costs. The payoff is that you now own a home where you can put your own personality into the interior and exterior. Below are a few tips to consider when looking as likely all your savings will be used for your deposit:

  • Buy a home that has been well-maintained.
  • Buy a home that has recently had major components upgraded or replaced (e.g, new roof, new water heater, new plumbing, new electrical)
  • Consider a builders report – If you have a property under contract it can be really useful to have a builders report completed. This should outline for you any immediate and short term maintenance that needs to be completed so you can take this into account.  
  • Once you have bought a house ensure you regularly maintain your home to prevent small problems from becoming major repairs.

Plan to set up an emergency account.  3 months of income is a good goal to aim for.  Have your mortgage structured so that this emergency money is accessible but still reducing your interest

Fear #3: Buyer’s Remorse

What if I don’t like it once I move in? In reality you need to be thinking your first home is stepping stone, not your dream home. Also remember that most home owners sell and upgrade their home approx. every 5-7 years.  So it is not a forever home in many cases. In saying that, things don’t always go to plan, you would want your house to be suitable enough for your needs if it became a longer term home for what ever reason. 

This is why is so important when looking for a house that you have a clear list of the must haves in your home as opposed to your negotiable.  Attend as many open homes in your price range as you can so you can be realistic about what is available. If you find a home you think you want to buy, sleep on your decision before making an offer. It’s a great idea to take someone else along to look at the property, whether its family or a friend they will be able to give you a different insight. 

Do not sign a sales and purchase agreement in front of a real estate agent. Also, don’t be afraid to walk away from a house – new homes are always coming on the market.

Fear #4: Being Unable To Afford Your Mortgage Payment

Before you take on a mortgage do a full budget and take into account that there will be regular expenses like house insurances and rates that you may not have had to pay for before. 

You can mitigate some other risks by building up an emergency fund that can pay the mortgage and run the house hold if you are down on one income unplanned. This is also where different personal insurance policies can also be put in place to mitigate for larger personal incidents.  These are all important things to consider, plan and prepare for events that are outside of your control.

The banks also follow a responsible lending code, this means that they wont lend you money unless the are confident that you will be able to repay the mortgage. The banks when assessing your application will have minimum surplus requirements and often asses at a higher interest rate to allow for any future increases.  

This is something that we at Bricks & Mortgages will also work through with you. 

Fear #5: Mortgage and Real Estate Jargon

Buying a house is a huge thing and “you don’t know what you don’t know”.

This is where working with the right team of professionals is really important like a Solicitor, Mortgage Broker and Accountant if necessary. 

At Bricks & Mortgages we will help educate and support you through out the whole process. If you are wanting to make your dream of home ownership a reality make sure you give us a call on 0800 55 76 54 or book in a time below:

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