The 4 worst properties for first time home buyers
When it comes to buying a house, it can all get so exciting that telling the good eggs from the bad can become a little tricky. This is even more true for first home buyers who don’t yet have any experience.
Everyone goes through that step at some stage, but you needn’t make the same mistakes. Here are the four worst properties that a first-home buyer can purchase!
1. A property that requires too much TLC
Australians do love a fixer-upper, and there’s nothing like the feeling of accomplishment when you turn a project house into your dream home.
That said, be wary of how much work it’s really going to take. Even something as small as repainting a room or re-carpeting can take more time, money and organisation than you might think – especially if you’ve never done them before. Be realistic about how much room you have in your budget, and how much of your weekends you’re willing to donate to the cause before signing on the dotted line.
2. A property in a declining area
Even the most savvy house buyers can get caught out by this one.
Should you take out a first home buyer loan and use it to purchase a property in a declining area, you may not be able to recover your investment when it comes time to sell. This can happen for a number of reasons, such as if a large store or attraction closes down, if public transport is diverted away, or if the neighbourhood starts looking shabby, to name a few.
It may be the nicest house on the worst street, but the worst house on a nice street could still be a better investment.
3. A property that’s the wrong size
Just because you can afford a four-bedroom mansion, it doesn’t mean you need to buy it right now. On the other hand, young couples are often inclined to purchase a smaller house or unit as it suits them right now.
There are both pitfalls in buying a home that’s too large, and one that’s too small.
Larger properties tend to sell for more, so it usually means your home loan will be larger than necessary, adding more interest to your total. Plus, it will mean more housekeeping and maintenance than necessary!
However, smaller homes may not accommodate for growing families. If they haven’t factored in the arrival of pitter-pattering little feet within a few years, they may quickly outgrow the space and need to move all over again. Keep your future plans in mind and account for any changes within the next 5-10 years when making your decision.
4. A property that’s too good to be true
Is everything about the property absolutely incredible – and all for a bargain price?
Do some serious digging before jumping in. In many cases, there may be some reason for this unbelievable deal, such as if a train track is going to be laid behind the back fence next year.