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Common Mistakes When Buying a Home – Tips From A Seasoned Chef!

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Alright, so I’ve been getting some really heated emails over my last blog post which you can read here. I understand that many people actually dislike the term “house flipping” because it implies speculative investments which borderline on being scammy. Fair enough.

So I am going to switch gears a little and now talk a little about mistakes that one can make when buying a home.

I know that this may sound weird coming from a Chef, but trust me – I have done enough property investments to be an authority in this field. Just like I am also an authority on dating and seducing women! (Saying that with my tongue firmly in my cheek…)

Common Mistakes When Buying a Home

Most homebuyers tend to commit common mistakes when buying a home. Don’t become one of them by preparing yourself and learning about these mistakes beforehand. Here are the most common mistakes when buying a home that you have to avoid:

1. Changing your financial position before closing the deal.

If you have already found the perfect house for you, but still have a month before your pre-qualified loan closes, you have to resist the urge to shop for a new car or new furniture within that month if you have plans of financing them. In fact, to ensure that your financial position stays the same before the loan is approved, you have to avoid doing anything to your finances to compromise that. New ratios might nullify your qualification altogether – remember that.

2. Forgetting extra expenses.

Once you become a homeowner, extra expenses are sure to pop up left and right. Suddenly, you have to start worrying about property taxes, repair fees, service fees and insurance, among other things; and these things can definitely become expensive. One of the most common mistakes when buying a home is forgetting that these extra expenses exist. Unfortunately, if you are caught off-guard, you might end up in intense debt because of them – especially if you aren’t prepared.

3. Falling in love and forgetting to think.

A lot of people fall in love with houses at first sight. However, you shouldn’t just let your heart take over your decisions when it comes to this. You need to ask yourself if the house will fit your budget and your family’s needs to a tee first. Remember: you have to buy a house that you need, not a house that you want. Ideally, you should look at several houses in the neighborhood to figure out whether the one that you like is a good deal. If it isn’t, then move on, no matter what your heart might be saying.

Buying a home is like attracting an unknown girl – it’s true!

4. Not doing a neighborhood check.

Another one of the most common mistakes when buying a home is not doing a neighborhood check during different times of the day and different days of the week. Make sure you scout the area well; find out more about the transportation facilities and schools nearby; and learn more about the amenities, zoning issues and crime levels before making your final decision. Online portals (such as PropertyForSale.com.my) often have good or bad neighborhood ratings which aid decisions on real estate investments.

5. Searching for a home alone.

Another one of the most common mistakes when buying a home is looking for and buying one alone. Buying a home is usually stressful and complicated, so don’t be afraid to hire several experts to help you out. Get help from a lawyer, a banker, an agent, a property inspector and a financial adviser, if possible, and make sure you have a good referral basis when it comes to them. Ideally, you should find a team that truly understands your financial limitations and your needs, yet still has your best interests at heart. Naturally, they will need to know all of the regulations and rules associated to real estate transactions, as well.

UPDATE: I’ve decided to revisit this blog post since I published it last month – and despite getting emails on readers of this blog disagreeing with me, I am still standing by what I have written here. Granted that I am no real estate investment expert, I am still profitable from my (mis)adventures in the property niche. I do have to agree that many of this tips do not apply when you are considering a luxury apartment for example. If you want tips on acquiring a KLCC condominium for example, then go to http://klcccondominiums.com.my and get specialist information on that topic.

Hope that helps!

Good luck!

-Jeff


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