The 8 things I wish I'd asked before buying my first home
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You're thinking of buying a house. As a first-time home buyer this can be as terrifying as it is exhilarating.
"It's easy to feel overwhelmed before you've even started," says Berry Everitt, CEO of the Chas Everitt International Property Group. "And if you're new to the property market, you don't know what you don't know. Buying a home is a huge investment, possibly the biggest you'll make, so it's important that you have all the correct information, and this starts by asking the right questions.
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How much can I really afford?
Before you start looking at houses, look at your budget and be realistic about what you can spend. The general rule is that you shouldn't spend more than a third of your monthly income on bond repayments. It's a large, long-term commitment and you need to be financially ready. Want to know what you can comfortably afford? Your first step is using a bond calculator.
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What's the reason for the sale?
People move for many different reasons: job relocation, needing a bigger house, marriage, and retirement. It's key to try and establish the seller's motivation. If they're emigrating and want to sell quickly, this puts you in a stronger position to negotiate a lower offer, but if the house is on sale because it's near a noisy, busy road, you may want to reconsider your decision.
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How long has it been on the market?
The longer a house stays on the market, the more likely buyers are to think there's something wrong with the property, ultimately making it harder to sell. However, the reason could be that the initial asking price was simply too high. On the other hand, if the house you like has only just been listed but you're in a peak demand period, this should motivate you to act quickly.
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What's included in the sale?
Fallen in love with the pendant lights in the hallway or the pergola in the garden? Never presume things will be there when you move in. Agree to a detailed list and include it in the contract to avoid disappointment. If there's something you have your eye on, ask the seller, they may just be inclined to include it in the sale.
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What should you know about the neighbours or the area?
Boundary disputes, noise complaints, barking dogs, traffic congestion, limited parking, property development on the cards, access to public transport - it's important to find out what your new neighbourhood will be like. Do you want to live in a family-friendly suburb or are you looking for an older, retired crowd? Ask these questions before you make a decision.
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Have major repairs or renovations been done recently?
Significant expansions or renovations done by a professional can save you money in the long run, but hasty, cheap upgrades can be a headache you hadn't bargained on. While minor work won't impact the structure of the building and doesn't need approval, major works needs planning permission and the correct approvals and permits.
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How old are the appliances, components and major systems?
A roof that you didn't realise needed to be repaired can be a costly expense that you hadn't budgeted for when you bought the house. To help you plan for future maintenance costs, find out the remaining lifespan of the roof, plumbing, electrical system and any appliances you're buying. This may also help you negotiate a better deal. This handy buyer checklist will guide you on what you need to look for.
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What are the average monthly costs?
As a first-time homeowner you likely won't know how much it costs to run a home. Other than your monthly bond repayment you need to consider other expenses such as electricity, water, internet lines, sectional title levies or homeowners' association fees, municipal rates and insurance. An estimate of these costs will help you decide if you can afford to live there.
First-time buyers can find the process intimidating and complicated but you can remove some of the stress and avoid these purchasing potholes by using a reputable estate agent. Just remember that there are no silly questions when it comes to an important life decision such as buying a home. Educate yourself with as much information as you can to help you make the right decision.
Ready to make a house your first home? Download our free home buyer guide or chat to an experienced Chas Everitt property consultant.
Author: Chas Everitt