You want to buy a house, and you fall in love with a property or investment, but are you thinking with your head or your heart. If you are looking for a property to invest in, make sure you avoid the common mistakes many encounter when buying property and hiring conveyancing services.
Buying the first house or property you see
While it is tempting to jump and put in an offer for the first house you see, it is important that as an investor or a potential home owner you always do your research and look at plenty of properties in the area.
Not doing due diligence or correct inspections
You can’t always take the sellers or real estate agent’s word for everything in the listing, so do your research and ask your conveyancing solicitor on their thoughts on the Section 32 Vendors Statement and the proposed contract, and engage a building and pest inspector to check out the property and ensure it is in great condition and you are not buying a lemon or a property that is going to be a money pit.
Bidding too high or not researching the local property prices
It is easy to get caught up in an auction or a bidding war for a property. Know your limits and stand you ground, otherwise, you could wind up paying too much for a property.
Getting emotionally attached to a property
Take the emotion out of the potential property purchase, while it might be a gorgeous property with all the trimmings, is it practical, does it have the value you need and will it need expensive renovations. Buying with your head and not your heart is essential.
Not doing researching prices and properties around the local area
While it might seem boring to do research and pound the pavement looking at comparable properties, it is essential if you want to get a property that offers value for money. Explore the properties of a similar standard in your local area, talk to reputable real estate agents in the area, and understand the prices and past sales and do some thorough research so you can confidently bid for a property without paying too much.
Buying without a large deposit
When you have a sizeable deposit you will often have more options when it comes to finance, so it is important to focus on gathering as much money as you can so you can get the finance and interest rate that offers the most value. Speak with your broker or bank and do the calculations and get pre-approval ahead of the property search, so you are well aware of what properties fall into your budget.
Not doing your research regarding the costs for home loans and fees
This might seem like a mundane part of the property search but understanding the costs and fees involved in your property purchase will help to ensure you have the funds to cover everything and you are not caught out. Speak with your conveyance specialist and find out what costs you need to put aside funds for so your property purchase runs seamlessly.
Whether you are an investor or purchasing to live in the property, it is essential you create a plan, do your research and ensure you are well researched in the local area to ensure you have all the essential information you need ahead of putting in an offer for a property.