This booklet lists 13 of the worst mistakes made by Home-Buyers. It suggests, briefly, how to avoid these mistakes so that buying a home will indeed be an exciting and rewarding experience.
Here’s a glimpse!
Financial stress is horrific. It tears families apart. The most important financial questions to ask yourself, before you buy a home, is: “What’s the worst that can happen?” What if the interest rates rise? What happens if you buy based on two incomes and you lose one income? Think of the future.
Your financial limit today will rarely be the same as your financial limit in the future. Sure, it might be better. But what if it’s not? What if things get worse? Play it safe. Make sure that when you buy a home, you will be able to keep you home.
There are two kinds of buyers: Those who buy what they want, and those who buy what they need. The public world of materialism is often a private world of financial stress. Do you need four or five bedrooms? Do you need to live in the ‘best’ area? You can buy a better home is a less expensive – less prestigious – area. What’s more important – struggling to maintain an image of wealth or living safely within your means?
Most buyers could save tens, even hundreds, of thousands of dollars buying what they need instead of what they want. Think about it. Be careful.
The extra costs of buying a home can add as much as ten percent to your purchase price. In some States, the government stamp duty climbs as high as six percent of the price. Will you need money for inclusions for your home, items such as carpets and curtains? And then there are the hidden costs of ownership – rates, taxes, insurance and maintenance.
These can add up to thousands of dollars – all of which are constant costs. The price you pay for your home is not your final cost; it’s the first of many costs. Know what they are and make sure you can afford them.