Buying a new home can be exciting but it can be incredibly overwhelming. Moreso, if this is your first-ever property purchase. This is natural given the importance of the buy and its size.
Here are 5 common fears that are experienced by new homebuyers in Australia and the potential solutions to help ease your worries.
1. House value dropping
This is one of the most common fears new homeowners or buyers face. Some fear this as they worry that they have missed out on buying property at a lower price.
Another concern when it comes to a low property value is tied to running out of money early into owning your home leading to losing your property. If this were to happen and the value dropped, then you would have lost more money than the property-buying process would have cost.
All in all, this is not a concern as property values are rising more and more in Australia with a drop unlikely to occur so soon after purchase.
SOLUTION –
If your property value has fallen and the property was always meant to be lived in short-term or flipped, then you may have to be patient as values are sure to rise again soon.
2. Not Being able to afford your mortgage
Mortgage repayments are a common part of buying real estate in today’s market. Most save for their deposit, without much thought on how they are going to be making their mortgage repayments. As many Australians are used to paying rent which may be similar to your mortgage, they may fail to account for the other expenses that come with homeownership.
SOLUTION –
You will need to have a thorough understanding of your everyday expenses and your income. From here you can create a budget to be able to determine how much you can afford and how much extra money you may need to save. It is important to have a reasonable amount of savings aside from your deposit for other expenses and for any first-year struggles.
Once you have a budget drawn up, you are better prepped when you shop around for home loans. It is also recommended to consider the services of a mortgage broker to assist in finding a loan that works best for your financial situation.
3. Saving for a deposit while house prices rise
When you are saving for a house and are keeping an eye on the rising values, it is easy to feel as though you are constantly chasing an impossible dream. While saving for a large deposit is ideal for many, there are plenty of options to make buying a first home a little easier.
First homebuyer grants and concessions are available as well as low deposit options with lenders.
SOLUTION –
There is no need to rush into the property market if you feel as though the goalposts are further and further away. Only make a move when you are ready financially. Make sure to fully explore what options are available to you and seek advice from professionals to set an achievable goal to help you get into an affordable home sooner.
4. Separating from a partner after the purchase
With the rising housing prices, most couples are splitting the costs and buying a home together. This makes a home more affordable than trying to achieve this goal alone. However, separations and divorces are not uncommon. Most do not plan for this for several reasons, which may cause some difficulty later when settling the fate of the property.
SOLUTION –
While this is not something most want to think about, it is always good to have a plan. Speak with a lawyer to have a formal agreement in place in case of separation or divorce. While you are there, you can discuss the fate of the property if one or both owners were to become deceased. While it can be difficult to talk about at the moment, it saves you from extra stress in an emotionally draining situation in the future.
5. Buyer’s Remorse
After going through all the online property listings, open houses and real estate inspections, the last thing you want to experience is any remorse after buying your property. While many are holding out for a dream home and are disappointed with reality, others regret their purchase after they discover their new home was not as expected.
SOLUTION –
To avoid disappointment, it is worth exploring the use of property valuation services. Valuers can perform a pre-purchase valuation, which means that they examine a property meticulously. They investigate its many characteristics and the influences on its market value. They then provide a comprehensive property valuation report, containing such details as potential risks, market trends, recent comparable sales, and the home’s current market value.
As the report leads to a well-informed purchase you are less likely to experience any buyer’s remorse.
For more about property valuations and how they can assist with easing some of your homebuying fears, contact a local valuers service today.