When Buying a House real estate Gold Coast has been experiencing a boom in growth in recent years, but now it’s at the point where people who aren’t knowledgeable about what to look out for when buying homes are making bad decisions that could cost them more than they bargained for. Here are seven red flags to look out for when buying a house in Gold Coast and tips on how to avoid falling into these home-buying traps.
1. Overextending yourself financially
It’s easy to get overextended when you’re looking for your first home. But that’s just about the worst time to let your emotions take over. According to Lisa Connery, real estate agent and owner of Gold Coast Buyers Advocate, Too many people get in too deep and think they can stretch their budget even further. They wind up going way over what they can afford and end up getting more house than they can handle. So ask yourself: What is it worth to you? It might be tempting to buy every feature on a wish list but try not to fall into that trap.
2. Being in a rush to buy
No matter how excited you are about your new home, buying in haste could be a costly mistake. The best course of action is to find an agent with experience in your area who can give you and your partner plenty of time to do your research. A Gold Coast buyers advocate has access to data that can reveal common red flags, including dangerous wiring and old/weak insulation, which could cost thousands of dollars over time. Most agents will tell you there’s no hurry up when it comes to making one of life’s biggest financial decisions. The best part? You don’t have to fear being pressured into purchasing something outside your budget—agents work on commission only when they sell properties!
3. Reliance on others
If you’re paying more than 20% of your monthly income in mortgage repayments, it’s likely that you’ll have to rely on others if things go wrong. In addition to a new mortgage, you could be responsible for other significant loans, such as credit cards and personal loans. If one or more of these debts falls into arrears, your financial security can be seriously impacted. Ensure that you can maintain your mortgage payments before moving into an expensive home. The Gold Coast buyers advocate says that not having enough equity in your property means that in times of difficulty, there's no room for error when it comes to being able to keep up with payments.
4. Too much emphasis on the floor plan
It’s easy to get caught up in floor plans and superficial details, like what color a room is painted or whether it has hardwood floors. These things are not going to influence whether or not you are able to sell your home at some point down the road, so it’s important to focus on more important details. Keep in mind that for most people, once they move in and live there for awhile, their initial excitement about these things wears off. Chances are that whatever’s your favorite part of a house now will eventually just be another room you have to clean.
5. Ignoring your gut feelings
Every now and then, it’s completely normal to see a home that is just not for you. It might not feel like it’s worth your time or money to even step inside. You might not have any idea why—but it just isn’t right. Pay attention to these feelings and trust them when they arise. After all, if you’re going to live in your home for years to come, it had better be somewhere you can feel good about!
6. Taking shortcuts with the mortgage application process
Be sure you are qualified, and shop around for your best rate. You can comparison-shop for mortgages online or with a bank or mortgage broker. Getting pre-approved means you can find out what loan amount you qualify for based on your financial information and debt history. It also means that, should you find the perfect house, you won’t have to go through another round of tedious applications just to buy it.
7. Failing to protect your interests in the contract
Most buyers just sign what is presented to them by their real estate agent and take their word for it, assuming everything is in order. A good buyer’s advocate will review your contract and ensure you aren’t signing something that could put you at risk during or after settlement. The worst thing you can do as a buyer is to give up control. Not only should you be reviewing the purchase contract with an expert who knows how to protect your interests, but they should also be acting on your behalf when negotiating on behalf of the seller with the other side’s property representatives. An experienced buyer’s advocate will know how to protect their client by understanding which clauses in the agreement are most important and how they might negatively affect a property owner if not amended.
