6 Types Of Properties To Avoid For First Time Buyers
At times it can feel like the whole world is against you as a first time buyer. What doesn’t help is making the incorrect decisions and suffering from the consequences.
In order to help all of you first time buyers, here are 6 of the biggest mistakes.
Sometimes you can get carried away, blow your budget, or borrow extra in order to impress others with a giant home. However with most first time buyers not having a lot of money to spend in comparison with someone a few years older, it suggests that keeping some money spare would be a better idea than going all in.
An oversized home means a lot of maintenance, this could diminish funds once more. Your first home should be manageable, the expansion is something you can do later down the line.
Too Much Work
Many people enjoy a project. They want to take a diamond in the rough and turn it into something perfect. There’s nothing wrong with this if you have a large budget, however as we discussed most first time buyers have limited funds.
If a house needs too much work, then you’re going to encounter two issues.
- The house never gets finished
- Makes it harder to sell
A first home should be one of two things. An investment or a temporary island. If you don’t have the money to improve a home that needs a lot of work, then it could make real estate progress extremely difficult. Give yourself the best possible start and avoid this mistake.
Small & Cozy
It’s easy to fall for the cozy, quirky and homely comments that a real estate agent will feed to you. But a home that’s too small seriously limits you, especially if you have plans of starting a family.
Without planning permission, space for expansion or money to do this, that cozy home can feel more like a jail cell after years of living there.
Potential For An Act Of God
Your first home as we said is an investment or your bridge to the next phase. At this stage you’re walking on egg-shells because all of your money may be invested into this home.
If you purchase a property that sits on an active tectonic plate, falls in a well known hurricane path, is near the sea or near a river, then you face the real possibility of floods, earthquakes and high speed winds. This could drain your money pretty quickly via damages or by simply destroying your home.
When it’s an act of God no ones coming in to save the day and bail you out financially. This could create a situation where you’re starting all over again in the real estate market.
If there’s a house on the market that is priced extremely low and seems like a steal, then you may need to do some deep domain research.
If you can’t find anything wrong with it, then ask others. Chances are there’s a geographical, calendar, climate or social reason for this house not selling.
You have to remember there’s no shortage of people looking for homes. If a property hasn’t sold and the price is dirt cheap, then thorough research is required because there’s probabaly something wrong. You may get lucky and find a gem that everyone else is skeptical of, but make sure you do your background checks first.
The Historic Problem
There are those people who are in love with history and houses that were built by hand using high level craftmanship. These houses are stunning and well-built, but a pain in the backside.
You will find issues in the winter when the house gets extremely cold. Houses like this need constantly heating which costs a lot of money.
Want to plug in your laptop or connect to the Wi-Fi? This is going to be harder than you think. It’s a common problem in the UK, with many houses being built hundreds of years ago, these basic facilities aren’t easily accessible. If these houses do have these facilities, then their locations usually suck. Having one socket per room and having it located near the door where it’s easy to install, means that the layout of your room has already been decided and not by choice.