1) Buying a house without any plans of staying for good.
If you are tired of paying rent that’s why you finally decided to buy a new house, then good for you and your family. However, if your family is planning to migrate abroad in a year or two (or in a few months) and you are just waiting for your visa, you might as well forget about buying your own house now.
It is much better if you are buying a house now and planning to occupy it in a year or two. However, if you are thinking of buying a house to rent it out to others or sell it in the near future, you are only foregoing its equity. Why buy a house in the first place, right?
2) Thinking that the costs involved are the direct costs.
Initially, you set a home-buying budget. That’s the easy part. The problem is sticking toy our budget wherein you may go beyond such for an added feature that you want your new house to include.
Remember that the costs do not stop after buying a house. In fact, bills will add up even before you move into your new home. This is the very reason you must stick to your home-buying budget. Think of the added costs. Buying a new house is not just about substituting the monthly rental payment with a monthly mortgage payment. There are utilities, maintenance costs and property taxes that you need to shoulder. This will be an issue if you more than one kid who goes to school, for instance.
Also, you need to think about your future finances. How stable is your current job? What happens when your source of income suddenly dries up? Can you immediately access emergency funds?
3) Skipping the inspection.
Even if you think that the house is in perfect shape, you still need to do a round of inspection. Mostly, there are no problems with newly built house and lot for sale. The problem is more profound when buying a foreclosed house, for instance.
You may inspect it yourself or hire a professional inspector. The latter will pinpoint areas that may compromise the structural integrity of the house that you want to buy. This is also the same reason you should buy from a reputable developer.
4) Forgetting to put everything in writing.
A common misconception of a home-buyer like you is getting everything that the house comes with (unless otherwise stated). Typically, house and lot for sales include the fully furnished or partially furnished tag. You should clarify what are the inclusions of a fully furnished house and put it into writing.
Certainly, this is not a small thing especially if you had to replace everything that you thought are included. Now, what you have is a bare house that needs window treatments, light fixtures, bathroom fixtures, etc. These will add up to your moving-in costs.
Never forget to check the contract item by item. If something is missing, tell the agent and get it into writing. Don’t sign anything unless you agree with it 100%.
A house is a major purchase, all the more reason you must avoid these common blunders. Don’t be a victim of your own expectations. Instead, inform your expectations by knowing how to buy a house prudently. Do not make any of the blunders above!