First home buyer mistakes to avoid

4 MIN READ October 23, 2018
Being a first home buyer is tough, even if you’ve done your research and have an idea of how it all works. There’s a lot of information to take in and it’s easy to fall into certain traps that make the process that much more…

We’ve put together some of the most common mistakes that first home buyers make to help you avoid any pitfalls and ensure that buying your first home is as pain-free as possible!

Forgetting additional costs
Buying a home incurs a lot of extra costs that first home buyers just aren’t aware of. We get too focused on our mortgage and interest rates and how much we’re prepared to pay for the home of our dreams, but we forget that we need to have some extra cash set aside for things like lawyers fees, property inspections, house insurance and the cost of moving all of your belongings into a new home. It can all add up very quickly so it pays to have a separate house-buying fund to avoid any extra financial stress.

Not getting a property inspection
Quite a few people opt out of getting a property inspection on a house they’re interested in due to cost or age of the home. A couple buying their first home were looking at what seemed like a solid build but a property inspector found that there had been some DIY insulation in the ceiling that was a serious fire hazard and would cost tens of thousands of dollars to fix. Regardless of how new the house is or how tidy it seems to be on the surface, it’s important to get a professional in to check things over so you know exactly what you’re dealing with.

Breaking the bank
When you’re buying a home, you’ll likely have a budget in mind. This is easy to stick to when you’re looking at houses you like and attending open homes, but it gets a lot harder when you’re at an auction where tensions are high. It’s easy to get carried away in a bidding war and end up paying more than you budgeted for. Many first home buyers get swept up in the emotional aspect of owning their dream home and stretch themselves to their absolute limits to have it. Owning a nice home that you can barely afford and will cause you huge amounts of financial stress really isn’t worth it.

Buying due to ‘buyer’s fatigue’
This is more common than you might think – many first home buyers spend countless hours attending open homes and auctions and it eventually takes its toll. Fed up with seeing house after house after house, first home buyers often end up purchasing a home that isn’t the best for them in terms of cost or living quality just because they want to finally own a home. Be aware of this going into it, limit yourself to a few open homes a weekend and try not to get too emotionally invested in each place you like.

Going it alone
In the same way that you would get professionals in to conduct a property inspection and deal with your legal requirements when buying a home, you should also talk with a mortgage adviser when looking at your home loan options. A mortgage adviser can offer you expert, independent advice and will go to the banks on your behalf to negotiate the best deal and interest rates for your needs. They’ll also take care of everything for you – from organising a pre-approval to sorting out your KiwiSaver if you’re using it for your first home.

Having someone on your side to help you through each step of what can be a stressful and confusing process is extremely valuable and is something every first home buyer should consider – our mortgage advisers offer a completely free service so why wouldn’t you?!


Share this article

Talk to us today

0800 700 699

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Are you ready to get started?

Fill out your details below and someone from our friendly team will be in touch soon.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.