It’s no secret that Australians are big on property; according to a recent study by CoreLogic, almost 50% of all Australian households own at least one property. But with the current market conditions, many misconceptions have developed and it could cause first-time buyers to steer clear of attempting to get their own home. With this in mind, we’ve listed some of the most common misconceptions here!
We should waive the property inspection to win properties
In a market where there are more buyers than properties, sellers can be picky about who they choose to sell to. As a result, some buyers might think that waiving the property inspection is a good way to sweeten the deal and make themselves more attractive to the seller. However, this could end up being a costly mistake if there are underlying issues with the property that are not immediately apparent.
It’s best to get a pre-approval before looking at properties
While it’s a good idea to get a pre-approval before looking at properties, this doesn’t mean that you should only look at properties that are within your pre-approved loan amount. Instead, use your pre-approval as a guide to help you narrow down your search. There are plenty of other factors to consider when choosing a property such as the location, size, and features of the home.
We need a 20% deposit to secure a property
Once again, while it’s a good idea to have a 20% deposit saved up, this is not always necessary. There are plenty of low-deposit home loan options available, especially for first-time buyers. You may also be eligible for government grants and stamp duty concessions if you’re a first home buyer. Therefore, you may have enough money now for a property when you previously thought otherwise.
I need to have a perfect credit score to get a loan
Having a good credit score will help your chances of getting approved for a loan, but you don’t necessarily need a perfect score. There are plenty of lenders who are willing to work with borrowers who have less than perfect credit – you may just have to pay a higher interest rate. Lenders assess your application to determine risk – the higher the risk, the higher the interest rates. However, this doesn’t necessarily mean that your application will get rejected outright.
I won’t be able to find a property I like
There is no shortage of properties on the market, especially in the current climate. Whether you’re looking for a house, unit, townhouse or villa, you’re sure to find something that suits your needs. With such a wide range of properties available, you’re bound to find something you love. Even if you can’t right now, nothing is wrong with waiting for that perfect home to come along if you don’t find it immediately.
I should always start with a lower offer than the asking price
If you’ve found your dream home, don’t be afraid to start with your highest possible offer. In a seller’s market, there is often competition for properties, so making your best offer first could mean the difference between getting your offer accepted or not. We mentioned earlier that forgoing the inspection is a bad idea, but offering the asking price immediately doesn’t always fall into the same category. So long as you’re still happy with the price and are getting good value for money, starting high could be the best strategy.
Armed with this knowledge, you should be feeling more confident about buying a property in 2022. Remember to do your research, work with a reputable agent, and don’t be afraid because you will find your dream home eventually. With PublicSquare, you can get your dream home even sooner thanks to the rent-to-own scheme!