4 tips to buying your first home

So you’ve found your dream home, have finance pre-approval and have made an offer. Bang! Next thing you know the real estate agent is calling you saying that another potential buyer has made a higher offer. Try to tame your competitive streak and avoid being trapped into a silent bidding war that’s outside your price range.

Tip: Try to avoid getting emotionally attached to a property. If other buyers place an offer that is beyond your budget, consider letting that one go. There are other properties on the market.

Sometimes, you may find that strata contributions are higher than expected. Don’t be afraid to probe the agent about this, there may be some recent work done within the complex and the strata fund may be a little low. Does the complex have a pool, gym, extensive garden, or elevators? All of these can contribute to the cost of strata contributions.

Tip: Ask for a strata report. You can ask for a strata report, however, you will most likely need to pay for this. If you’re serious about the property, this might be something worthwhile taking a look at. Seek legal advice about whether a strata report is appropriate for the property you’re interested in.

You may find yourself falling into the trap of guessing expense numbers when filling out a mortgage application form. You might like to have a think about spending time detailing your expenses in a spreadsheet. Remember, be realistic and honest.

Tip: Get a second opinion. Consider having someone look over your expenses who does not have a vested interest in your purchase. They may see some inconsistencies or be able to help you brainstorm other expenses you may have left out.