Taking your first step into the housing market can be a daunting experience. Unfortunately, there is no completely watertight step by step process to make sure you’re purchasing the right house for you. However, if you keep reading you will see some of the biggest mistakes that first time buyers make and know what to avoid when it comes time to buy your own first home. Don’t be a first time seller that regrets their decisions as a first time buyer.
A bit too snug and small
If you are newlyweds or plan to start a family soon, as a first time buyer, you should definitely avoid choosing a property that is a bit too cozy. It’s highly advised you don’t go for a two-bedroom home as you will find yourself a little cramped when child number two arrives and you’ll be looking to move to a larger home. Even if you do not have any immediate desire to start a family, plans can change over the course of a few years and the small two-bedroom old cottage you found adequate could become restrictive. Three-bedroom houses are generally more suitable for first time buyers as, if do you stay at the property for more time than you initially expected, they offer enough space to comfortably start a family.
On the other end of the scale is the home that is much too big. A six-bedroom house will offer plenty of space for guests and your future children to grow up, but it may not currently suit the needs of you and your partner as first time buyers. You won’t need the extra bedrooms for many years and may be paying a much larger mortgage than you presently need to.
As first time buyers, it may be tempting to buy yourself a property in need of some renovation and bring it up to date with a little work. There are plenty of TV shows that show the transformation a home can undergo with a couple of big jobs and a few weekends of painting and decorating. However, lots of project homes overrun on time and go significantly over budget, even when handled by veteran homeowners. If you can realistically perfect your home within a reasonable budget and time frame, with simple upgrades, you may have found the right project house for you. But as a first time buyer, if you spot several big jobs and the need for a major overhaul, you should avoid falling into a money pit.
The free time killer
Does your prospective new home have any luxurious special features that will require lots of maintenance or upkeep? Swimming pools, hot tubs, large front and back gardens, etc. all require lots of time and considerable expense to maintain. Are you happy to spend your free time and cash maintaining the idyllic appearance and features of your home? If not, then you should find something more manageable being a first time buyer.
Thinking of your new home as a business investment
Every first time buyer would like to enjoy their new living space for a few years, maybe make a few improvements, sell their home for a handsome profit, and buy an even better second home. But treating your first residential property as an investment opportunity, rather than a home to live in, can backfire and snuff aspirations. Sometimes you can make endless home improvements that just don’t resonate with the next potential buyer. And due to external factors, house prices don’t always rise and you are left with very little control over the value of your property. Being a first time buyer and thinking of your first property as an investment, and are more concerned by a home’s sell on value than you are by its suitability as a living space to reside, you should study the market very thoroughly before making any decisions. Take as much expert advice as you can and think carefully before you make an offer and sign the paperwork.
Forgetting the location
While your own needs may not be affected by a home’s location, sometimes it will greatly affect future buyer’s needs. You may think you have found a bargain, but struggle to find a buyer when it comes to selling. Even if you have no plans to start a family or don’t mind not being located in the rough around the edges side of town, being a first time buyer, you should consider what future buyers will look for. Make sure to keep an eye on the school district and fiscal strength of the area.
Remember also as a first time buyer, your monthly payment will be very important to you. As a pretty good gauge, you can determine your monthly payment by checking HERE.
As always, do not go at this alone. I have many years of experience helping first time buyers and my services for buyers do not cost you one penny!
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