Avoiding Home Buying Pitfalls: A Guide to a Smooth Purchase

Buying a house is a major decision that should not be made impulsively, especially for first-time buyers who may easily fall into the trap of purchasing a home. If you make a hasty decision based on pressure from family and friends and end up incurring significant losses, was it really worth it?

To make sure that buying a house is a smooth and enjoyable experience, you must be aware of and avoid these 6 common pitfalls when purchasing a home!

1. Buying a House in a Borrowed Name

Think carefully before buying a house in someone else's name because this action will consume your credit limit. If you want to buy a house, your loan capacity will be limited, and you may lose the first-time buyer discount.

People who opt to buy a house in a borrowed name usually face the following issues: insufficient funds, poor credit, and wanting to receive a discount for buying a home.

To avoid incurring large debts, it is best to avoid buying a house in someone else's name as there's no guarantee that the other party will not maliciously default on the loan and lead to credit bankruptcy.

2. A Remote Location

A house located too far from daily conveniences such as work and school can lead to increased commuting costs and reduced convenience. Furthermore, remote areas or suburbs often have limited potential for development and appreciation, which may result in declining housing prices. If your budget permits, it's recommended that you buy a property in a thriving area or an urban centre.

3. Lack of Background Checks

Before buying a new or second-hand home, it's important to conduct a background check. Essential background investigations and researching the developer are ways to avoid purchasing unfinished buildings. Friends buying second-hand homes should be aware of the basic information of the previous owner, including any criminal records or property seizures.

4. Buying a Home in Debt

Once you've determined the property price in the area of your choice, you can calculate the down payment based on the property price. It's recommended that the monthly mortgage repayment should not exceed 40% of your monthly salary, as a higher mortgage can result in a reduced standard of living. You can create a house-purchasing plan based on your salary and avoid choosing a house beyond your means. The best way to buy a home is to have financial breathing room while owning your dream home.

5. Incorrect Budgeting

Some homebuyers, especially first-time buyers, may need to be extra cautious when creating a home-buying budget to avoid making mistakes. In addition to the total house price, you must also factor in legal fees, property management fees, decoration costs, additional furniture expenses, and other costs into your house-buying budget to avoid the predicament of not having enough funds to decorate your new home.

6. Neglecting Building Inspections

The first step after receiving the keys from the developer is to conduct a building inspection. A building inspection is a crucial check to ensure that the house is in good condition and free of defects, particularly for issues such as water leaks, structural problems, and furniture functionality.

If you notice paint marks or water spots on the walls or ceiling during your building inspection, it could indicate a leak in the house. It's recommended to hire a professional building inspection expert if possible. Neglecting the building inspection process can result in additional repair costs and delay your plan to move into your new home.

In conclusion, buying a home is a big decision that requires careful consideration and planning. To avoid falling into the pitfalls of home buying, it's essential to think twice before buying a property in someone else's name, carefully choose a location that is both convenient and has potential for growth, conduct thorough background checks, budget wisely, and never skip building inspections.

Remember, being a savvy homebuyer will help ensure a smooth and enjoyable home buying experience, so take the time to plan and prepare before taking the leap.