{"id":4880,"date":"2015-07-01T01:00:42","date_gmt":"2015-06-30T15:00:42","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=4880"},"modified":"2015-07-01T01:00:42","modified_gmt":"2015-06-30T15:00:42","slug":"first-home-buyer-mistakes-to-avoid","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/first-home-buyer-mistakes-to-avoid\/","title":{"rendered":"First home buyer mistakes to avoid – Michael Yardney"},"content":{"rendered":"

 
\nBuying your next home can be a daunting task,\u00a0especially if it\u2019s your first home. In today’s show\u00a0Michael Yardney<\/strong><\/a>, from\u00a0Metropole Property Strategists,\u00a0takes a look at the common mistakes made by first home buyers \u2013 ones that you should avoid.
\n <\/p>\n

Transcript:<\/h4>\n

Kevin:\u00a0 <\/b>No wonder, when people set out to buy a home that they make some mistakes. You have to understand that quite often the system is stacked against the buyer because all the power is in favor of the seller.
\nThis is fairly true if you\u2019re buying your first home. Quite often that property can be the biggest purchase you will ever make in your life, so it\u2019s pretty important that you know what those common mistakes are. Let\u2019s have a look at a couple of them.
\nMichael Yardney from Metropole Property Strategists joins us. Hi, Michael.
\nMichael:\u00a0 <\/b>Hi, Kevin. You\u2019re right; often your home is a stepping stone to be able to buy other investment properties or a bigger home in the future, too. So they are very important.
\nKevin:\u00a0 <\/b>Another reason I think it\u2019s good to go through these, even for seasoned investors<\/a>, is to pass these onto their kids.
\nMichael:\u00a0<\/b> It makes sense, doesn\u2019t it?
\nKevin:\u00a0 <\/b>It does. Let\u2019s have a look at a couple of them. What are they?
\nMichael:\u00a0 <\/b>One of the common ones is not doing proper research and preparation. Understand what your family\u2019s finances and what your needs are, understand what the plans are going to be in the medium-term. Are you going to have children? Is the family going to grow more?
\nThen not only look at your own family, but also look more carefully at the areas you\u2019re going to be buying in. What are the statistics like there with regard to crime, or regarding new developments that\u2019s going to occur there? What are the schools like? What\u2019s transport like? What are upcoming zoning issues? Not all parts of every suburb would be ideal to live in.
\nKevin:\u00a0 <\/b>No. Part of that preparation is also getting the right mortgage, as well, Michael.
\nMichael:\u00a0 <\/b>It is. Understand what your mortgage capability is and what your budget is. Get a mortgage preapproved. Are you going to get a principal-and-interest loan, or are you going to try to minimize your home loan repayments by having something closer to an interest-only loan? See what finance package is going to work best for your budget.
\nKevin:\u00a0 <\/b>Another confusing thing, too, Michael, is you pick the newspaper every day, and you\u2019ll see different reports about the market. It\u2019s just so hard for people to work their way through that.
\nMichael:\u00a0 <\/b>As an investor, timing is pretty important. As a home buyer, don\u2019t be influenced by the market. The right time to buy is when your finances are right and your family circumstances are right. Never wait for the market to be right, because it never will be, will it?
\nKevin:\u00a0 <\/b>No, it won\u2019t be, mate. What about stretching beyond your limit? That always a great temptation \u2013 in my experience \u2013 for buyers.
\nMichael:\u00a0 <\/b>It is, because you fall in love with a home, and you become emotionally involved. One of the things we all tend to do is overcapitalize our own homes. We spend a little bit more; we spend a bit more on the renovations.
\nThe trouble is a lot of first-home buyers, first-time buyers, haven\u2019t got such a big budget, and by overstretching \u2014 paying then more stamp duty, paying more mortgage in the long term \u2014 it does create a level of financial hardship. It creates certain financial shocks, especially when the market slows a bit and interest rates rise a bit \u2013 and Kevin, that\u2019s going to happen in due course.
\nKevin:\u00a0 <\/b>It will indeed, mate. Of course, in any kind of negotiations, it\u2019s not always about price, though, is it?
\nMichael:\u00a0 <\/b>No, it\u2019s not. When you\u2019re getting involved in buying a property, it\u2019s important to understand what you want and if the house works for you, and what the vendor wants. Maybe it\u2019s not always price; it could be terms.
\nOnly this week there was a vendor who wanted 180-day terms. He was prepared to stay there for six months, because he really didn\u2019t want to move out until the end of the year. By putting in an offer like that, it was just as important to that particular seller as was giving them a few extra dollars.
\nKevin:\u00a0 <\/b>Michael, also a lot of thought has to go into the right protection clauses in your contract. I\u2019ve heard you talk about the \u201cfed-up purchase.\u201d What\u2019s that?
\nMichael:\u00a0 <\/b>Kevin, that\u2019s when you\u2019ve been looking for a few months, and you just haven\u2019t found your dream home. The agents are misleading you, you\u2019ve been outbid by other people, you\u2019ve missed at a couple of auctions. You\u2019re fed up.
\nOne big mistake home buyers make is they buy a home out of desperation. They buy something reasonable rather than something that really, really suits their needs, because they\u2019re sick of the emotional rollercoaster of home-buying. This sometimes is a decision that they regret for a long time.
\nKevin:\u00a0 <\/b>There is another professional party you have to get on side apart from your solicitor, and that is probably a building inspector.
\nMichael:\u00a0 <\/b>Yes. If you\u2019re buying a home, I\u2019d always be getting a building and pest inspector to make sure \u2013 somebody competent, not necessarily somebody recommended by the selling agent, somebody you can get yourself. They are trained to faults, so don\u2019t freak out if they come up with this long list of things. Just ask for major faults; don\u2019t let the minor faults put you off buying a great property, Kevin.
\nKevin:\u00a0 <\/b>Michael, I said at the start of our chat, too, that it\u2019s pretty much stacked in favor of the seller all the time, because we misunderstand the agent\u2019s role in all this.
\nMichael:\u00a0 <\/b>That\u2019s right. The real estate agents are friendly people, and of course, you\u2019re going to have to deal with them, because you won\u2019t be able to directly deal with the seller. But the estate agent\u2019s job, legally and morally, is to get the best price for his vendor \u2013 for the seller \u2013 so it\u2019s wise not to offend them; it\u2019s wise to engage with them. Sometimes it\u2019s even better to get somebody on your side by engaging a buyer\u2019s agent to represent your interests, just like the seller has an agent representing his.
\nKevin:\u00a0 <\/b>That is probably the perfect point for us to introduce the fact that Michael is from Metropole Property Strategists. They are strategists, they\u2019re also buyer\u2019s agents, and they too can help you. Use the link on the home page at RealEstateTalk.com.au.
\nOn that note, Michael, thank you so much for your time.
\nMichael:\u00a0 <\/b>My pleasure, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

  Buying your next home can be a daunting task,\u00a0especially if it\u2019s your first home. In today’s show\u00a0Michael Yardney, from\u00a0Metropole Property Strategists,\u00a0takes a look at the common mistakes made by first home buyers \u2013 ones that you should avoid.   Transcript: Kevin:\u00a0 No wonder, when…<\/p>\n","protected":false},"author":176692471,"featured_media":4881,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[10,13,25],"tags":[101],"class_list":["post-4880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-latest-story","category-sponsored-channels","tag-podcast"],"yoast_head":"\nFirst home buyer mistakes to avoid - Michael Yardney - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/first-home-buyer-mistakes-to-avoid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"First home buyer mistakes to avoid - Michael Yardney - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  Buying your next home can be a daunting task,\u00a0especially if it\u2019s your first home. 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