A large portion of investors never make it past one or two property purchases – and it’s not because of their personal income, it’s because they made the following mistakes
1. Overbuying: Real estate experts cite this as the most common mistake for first-timers – buying more than they should or can afford. Make sure you have an excellent understanding of all the costs of homeownership involved, as well as a handle on your other expenses, from credit cards to personal expenses to car payments or any other commitments.
2. Emotion over reason: Buying your first home is an emotional moment and one you should be excited about, but you must keep your head. Don't let your “love” for a prospective home cause you to become overexcited and lose your common sense. You may end up buying the wrong house or paying too much for it.
3. Settling: Sort of the opposite of overbuying, don't “settle” for a house when there are likely better options available. Make sure you do your research on your finances, the neighbourhood, location and specifics of the home, so you know you're making an informed choice.
4. Not getting pre-approval for a mortgage: Getting pre-approved provides peace of mind in that you know what you can afford, which gives you confidence when it comes time to making an offer and negotiating.
5. Not knowing your mortgage options: While you may feel most comfortable going straight to your friendly neighbourhood bank for a mortgage, this may not be where you get your best deal. Finding the right mortgage can save – or cost – you thousands of dollars, so be sure to take the time to examine all options – from banks to brokers, and all the various products available.
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