5 things you shouldn’t do when buying your first home

IT’S one of the biggest decisions of your life. There are so many things to think about when you’re searching for that one house to call your own that it’s easy to overlook small but important details.

But first, let’s recap the big mistakes. Coming in at No 1 is overpaying for property. This is why theedgeproperty.com provides you analytical tools to check price trends and reference prices. Closely following behind at No. 2 is buying property you really like, only to find it uncomfortable to stay in when you finally move in — and have no money left for renovations. Moral of the story: think about whether the design and location of the property really suits your lifestyle before buying it.

With that out of the way, here is the collective wisdom of a few experienced real estate agents on buying your first home.

1 Don’t just ask uncle or aunty —  ask the professional

Because one mistake can cost you your life savings, so don’t risk it by only seeking advice from family, friends and relatives who are not in the industry. Ask the professional, licensed real estate agent and negotiator who knows more about the market, industry trends and issues that potentially affect the value of the piece of property you like. Their expert eye could also help you avoid costly renovations and repairs.

2 Do not buy property beyond your means (duh)

Moving into your own home should be a joyful event. You should be enjoying your life in your new home, not stressing out over how to pay for maintenance fees or meet the mortgage repayments.

Choose an asset you can afford now. Do not look at the maximum amount you could borrow, even if you’re certain you’ll be earning more in the future. Even as your income increases over the years, the expenses that you can and cannot control (Goods and Services Tax, toll, petrol, etc.) will rise as well.

3 Do not be stubborn. Decide on what you want but be flexible

Whether it’s the location of the property, the type, price or surrounding amenities, be sure of what you’re looking for. However, you should also be flexible and be open to alternatives. Have an Option B in mind, because after listing down all the criteria for your dream home, you may also find it’s way over budget. Knowing what you want, and can afford, can save time and money.

4 Don’t ignore related costs

Be realistic about your budget. If what you have in your pocket is just enough for the 10% down payment, you may need to save more first. Yes, you may be able to borrow the other 90% from the bank, but there are other costs and payments to be made when buying property, such as legal fees, stamp duty and insurance. Consult a professional on the true amount you should prepare before going shopping. This is crucial.

5 Do not hurry

Don’t be hurried or harassed into buying, and be patient when you find the process taking longer than expected — because it will. If you feel that it’s the right house in a right neighbourhood, plan on a few house and neighbourhood inspections at different times of the day so you can understand more about your potential future home and the community you’ll be living in.

Do not ask your kids’ tuition teacher about the value of your home. Click here at The Edge Reference Price to find out.

This story first appeared in The Edge Property pullout on Nov 6, 2015, which comes with The Edge Financial Daily every Friday. Download The Edge Property here for free.