Buying your first home is always a dream come true. There is so much expectation when it comes to that first property purchase. However, making the right decision in terms of the property size, its location, and future opportunity is very important. First-time buyers when looking for condos for sale in Scarborough or any other part of the GTA region should always take professional advice onboard. Here are some common mistakes to avoid when looking for the perfect property and buying experience:
1: Not Researching the Market Enough
Going into the market unprepared is one of the worst mistakes first-time buyers make so commonly. Ideally, you should not even see the first property option without doing lots of homework. Understanding the whole buying and moving-in process is very important.
Doing your research on mortgages and what is available to you will make a big difference too. A really good agent will always help invest your money in the best property. Think about the first property as a means to buy more in the future. Do as much research as possible to land the perfect option.
2: Buying When Already in a Lot of Debt
Another big mistake is to buy a home when you are already in a big debt situation. Getting your credit in check is very important when applying for mortgages as well. Carrying balances on credit cards or already paying hefty car finances can all take a big toll.
All these monthly plan payments will add up. You need to budget your purchase right. Being short or late on payments for any obligation will cause problems with your credit score. So, keep in mind the debt situation before investing in a condo or a townhouse property.
3: Estimating the Cost of Buying Wrong
First-time buyers often think that the only cost they need to pay upfront is the downpayment. However, there is a lot more to it. Your closing costs can be as high as $20k in some cases. Although agent costs are included in this figure, they can sometimes cost more.
When buying a condo in any building, there will be maintenance fees as well. Some condos will need maintenance fee payments in advance as well as ongoing. So, keep all of these in mind and save money that will cover all your expenses of buying a new property.
4: Not Exploring All Neighborhoods in a Big City
Big cities like Toronto have many interesting neighborhoods. Also, the surrounding areas in the GTA region are quite nice as well. So, when first-time buyers get stuck on a single neighborhood choice, they will slash their chances of finding a good option.
Also, if you haven’t been to a neighborhood, it doesn’t mean you should not visit. Something might be a great option when you least expect it. So, keep the neighborhood options open when looking for new condos in Brampton or any other area in GTA.
5: Looking at Detached City Houses When You Don’t Afford One
Of course, everyone would want the first property to be a detached city house. However, this luxury and liberty will not present itself for many. Think about properties that you can afford easily. There is no point in over-exerting your budget.
Think about your first condo as a stepping stone towards that goal of the dream home. Whatever money you pay as the mortgage payment, will be usable later. Selling this first property off and putting the money in as a downpayment for the next one is a sound tactic for the long run.
5: Being Stuck on Something
Usually, you get presented with an opportunity that looks too good to be true. Also, it is so easy to get stuck on something like that. However, the problem with properties that look too good to be true is that they are too good to be true. There will be something that is dropping the price so low.
So, instead of getting stuck on something and wasting quite a bit of time, it is always better to expand your options. Have a look at something that is within your budget and looks more realistic. This will help you make the right purchase.
6: Paying More Attention on the Small Stuff and Ignoring All the Goods
Usually, first-time buyers make the mistake of paying too much attention to the small stuff. If the property isn’t staged well or it is not very clean, it might still be of interest. Whether the tenants left it messy or it didn’t get cleaned recently, shouldn’t sway you away from the deal.
Also, when the building is old or the cabinets in the condo aren’t the color you want, look into it deeply. All the small stuff can be replaced quite cheaply and quickly. If all the big stuff checks out like the location or the number of rooms, go ahead with the property.
7: Not Conveying the Right Message to Your Agent
First-time buyers often don’t convey the right message to their agent. In fact, most first-time buyers aren’t quite sure about what they want. This can be a critical mistake that can not only lengthen the buying process but also make you buy something less than perfect for your preference.
So, make sure to first list down all the priorities and preferences. Think about what you want. Let your agent know exactly how many rooms you need. Whether you want an open kitchen or lots of cabinets. All the right things and choices will make your experience much better.
Bottom Line
Buying the first property is always a great experience. However, these abovementioned mistakes can make the experience less than perfect. Make sure to do your research and look around in the city without having a neighborhood preference. Let your agent know exactly what you need. Be prepared to negotiate and calculate all your purchase costs correctly. Buy the first property knowing you can sell it later to move towards your dream home in the future.