3 Tips for Buying Your First Home in Adelaide
We all hope to one day own a home. The sense of accomplishment and being able to call a place our own provides a great sense of achievement. It is a place you can always feel safe and even raise a family and in most cases is a solid investment. When purchasing a home there are many things to take into consideration, the process can be an overwhelming and scary process especially when doing it for the very first time. Buying a money pit full of problems or termites that puts financial strain on you and your family is something no one wants to experience, but at the end of the day it is buyer beware. Do your checks and potentially save thousands in the process! In this article we will determine a few steps you can take to avoid a financial pitfall. If you are a first home buyer this article for you.
When finding your new home, we all assess the basics. How many bedrooms, bathrooms and where is the property located are on top of most people’s checklist, but we need to go deeper to determine why this is so important as it normally always relates back to money. The answer is complicated the more you think about it. People want more bedrooms generally for two reasons and both are particularly important in different ways.
Resale Value – What will it be worth when I sell?
- The more bedrooms, the better the resale value which is especially important. A first home for many is a steppingstone. Many first homeowners are using their first purchase to enter the market. Taking into consideration the resale value may seem fairly obvious, but it is easy to get caught up in the hype of finally being able to move out of the parent’s garage and into a place you can call your own. Overspending on your first home can potentially restrict your next move, whether it be upsizing to a new home or having to sell due to financial complications putting even more strain on your situation or even preventing you from selling. It is important to seek professional property advice from someone experienced.
There are many sources of information on the internet including podcasts i.e (Pizza and Property) and Youtube but it is important to remember to speak to someone with local genuine experience as they can provide invaluable information. Another good source is a real estate agent with local knowledge of the suburb or state you are purchasing in. Asking the question to two or three agents in relation to what they think the property is realistically worth can help point you in the right direction and ensure you are not overspending. Bear in mind, there are a lot of opinions out there and dealing with someone who has proven experience is crucial.
The only stupid question is the one that is never asked, so ensure you ask away and equip yourself with the arsenal prior to purchase. Check local listings in the area, are the prices on par with the home you are considering purchasing? With access to the internet this task is a lot easier than it used to be so don’t forget to do your own research to put your mind at ease.
- Again, this may sound obvious to most but inspect the property personally and professionally. Determining if the home is right for you is generally determined by one visit or no visit at all. Crazy right? Inspect the home as many times as possible, remembering to check that thing you forgot to check on the last inspection. Many homes may only be open once a week but asking the agent to arrange a separate viewing may just be what you need to put your mind at ease. Having 10-20 minutes to inspect the home yourself is simply not enough in most cases and seeking independent help from a professional building inspector is always recommended.
A building inspector will allow approximately 1-3 hours depending on the size of the home to go through it with a fine-toothed comb and ensure there are no major defects that may break the bank. If you would like to learn more about what a building inspection is, click HERE. Hiring a professional will be a small price to pay for the information that is provided on your new home and it could bring up something that you never saw or considered, putting you off the purchase completely. It’s not so much about buying a “bad” home, it’s about establishing if the home is right for you. There are many houses that are fixer uppers which many people are looking for. These clients are ready to get their hands dirty and therefor a problem like a bathroom renovation or a major roof repair is not a problem as it has been taken into consideration in their budget.
- Determine repairs prior to purchase. This ties in closely with carrying out a pre purchase building inspection, not only by yourself but from a local inspection professional. A simple, I do not like this colour wall is a quick fix. Painting and touch ups are not necessarily an expensive cost but should be considered in the budget, especially when buying your first home as the budget maybe tight. Ask yourself if the repairs can be completed by yourself or will a professional be needed? If you find yourself saying, I do not like the colour of the tiles in the bathroom and the oven needs to be changed, again. What may seem minor may blow the budget depending on what time frame for replacement you are wanting, are two-minute noodles really that good?
Ensure your budget is assessed so you are not left compromising. When considering what you would like to renovate, it is important to ascertain if the juice is worth the squeeze and the capital outlay will increase the property value appropriately. Overcapitalising is a pitfall that many have fallen victim to and doing your research is important to avoid this, the costs can add up quickly especially when looking to sell. If there are major defects found in the building inspection report. This is not necessarily a deal breaker. However, determining costs and arranging quotes from the appropriate professionals for remedial work will establish money needed for repairs which can either be used to negotiate the purchase price of the property or, take them into consideration and ensure they fall within your budget.
The list really does go on when it comes to buying your first home – do your checks. Arm yourself with knowledge and make an informed decision, surround yourself with people in the know and always get a second or third opinion. If we can help in anyway further, be sure to let us know. Check out our Youtube channel for handy hints and things to look out for. Happy house hunting Adelaideans!
The team at HomeMasters.