5 common mistakes that First Time Property Buyers make!
There is now time like the present property market boom to bring these mistakes into the limelight!
1. Purchase a property purely to get the new ‘GRANT’ that is on offer from the State or Federal Government at the time!
2. Not clearing the ‘consumer debt’ first! Think Afterpay, Credit Cards, Personal Loans or Car Loans - for every $10k of this type of debt, the borrowing capacity is reduced by approx. $40k
3. Get that ‘buying buzz’ and continue to purchase new ‘stuff’ for your home – particularly if using Afterpay or Interest Free terms. This leads to so many issues down the track in terms of being able to ride out the ‘tough times’
4. Borrowing the ‘maximum’ from the Bank because the Bank said they could. Bigger house also means Bigger repayments – make peace with purchasing an older/smaller/more affordable home over the bling!
5. Discuss the ‘exit’ strategy before signing on the dotted line. Regardless of whether it is with a spouse, de facto, friends or family – know what will happen in the event of…….?
Regardless of, buying as a First Home Buyer or as a First Time Property Investor, review the checklist above before you sign up to the bling!