Mistakes millennials should avoid making when purchasing a home

While it might not feel that way, millennials are getting older too. People between the ages of 18 and 35 are currently considered to be a “millennial” and these individuals are fast becoming young professionals in the workplace. This also means that they’re earning enough money to purchase a house or at least put down a decent deposit on their dream apartment. So, if you’re one of these people and are currently looking at buying a home of your own, here are the most common mistakes to avoid making.

Make sure you have considered all these mistakes before you finalise your agreement.

Not getting pre-approved: If you’re currently searching property sites such as Property 24 to find something to buy, make an appointment with your bank or any other finance broker to help you apply for the money you might need to secure your home. It might sound odd at first, but having that under the belt for the minute your dream house pops up will help you in the long run, as well as make the process with a real estate agent smoother since you’ll already have the information they need.

Not hiring a realtor: Looking at listings and thinking they’re “real” is not good enough in a modern age. So many online listings are not what they make out to be, so utilise the digital opportunities to hunt for homes, but when the time comes to view it, hire a realtor to ensure everything gets done professionally. Home shopping is a stressful project and having someone who can guide you and give you examples of the homes that meet your budget and requirements could really help you. After all, that is their job. They are there to give you the best possible package to suit your home needs.

Buying more “house” than you can afford: We’re living in an era when people compare themselves with their friends and family. Media and famous personalities also play a massive role in your goals and dreams, when in reality, it’s not practical. It’s easy to view something online and quickly determine that you can afford it. But, with houses, it’s a far bigger commitment. You have personal and house insurance to consider, tax and bond payments, maintenance and other factors to consider for years to come. These types of decisions need to be based on a long-term investment opportunity without the risk. The last thing you need is to find yourself struggling to get out of debt during your younger years in life. Start looking at cheaper, more affordable houses through a financial calculator, where you’ll be able to get a clear understanding of what you can or what you can’t afford. You can always upgrade when you have the money.

Not attending a home inspection: So, you’ve found your dream home and you’re ecstatic. Before you make any impulse decisions, make sure you apply for a home inspection for you to view the house and see what needs work. Pictures can be photoshopped or they can exclude specific areas, so make sure you attend the inspection yourself. If you have any questions that you would like to raise regarding the home, write down a list and bring it along with you for the inspection process. People must remember that a home is not only valuable for the property it’s on, but also for the state of the home. If the roof is falling off or there are several water leaks, these are added costs you’re going to need to cover yourself.

Not getting a home warranty: While the home you view today might be perfect, in a year’s time, things might start cracking and wearing off. Be responsible and make sure you discuss the home warranty option during your application process. A warranty will cover certain aspects, such as maintenance, rust or corrosion issues, that may develop over time. Although it won’t cover general wear and tear, having a warranty in place will save you plenty of money in years to come. In fact, it’s a nice fail-safe to have when things turn blue and you’re in need of some important maintenance changes that you can’t afford upfront.

Not factoring in resale value: If you haven’t got a bank account filled with money and savings, don’t forget to factor in the resale value of your future home. Find a home that can build equity by, for example, refurbishing the kitchen and entire home’s flooring. These small updates will increase the value over time, which will allow you to up the price when you do decide to sell it. However, one of the biggest mistakes that people do make is buying a home in a broken down area, refurbishing it and the minute they decide to sell, they’ve over capitalised on their purchase. This is devastating and will cause you a major loss.

Final words

As you can see, there are small but extremely important things to consider in your purchasing process. Often times, when you’re young, you tend to be naive. And, without the right professional support and guidance, you might land yourself in a pool of debt down the line. Take note of these mistakes, and try and avoid them at all costs when you decide to purchase your first house.