FIRST HOME BUYERS

30th August 2005

FIRST HOME BUYERS

Four small but vital questions.

Neil,

We are just getting the deposit together for our first home. Can you assist me with the following questions?

1. What material should I read so that I am thoroughly educated about first home buying and Real estate?

2. What information is available to research the history of prices in a neighbourhood?

3. What else should I know?

4. Who and what should I avoid?

RESPONSE

1. What material should I read?

Well, you can never be thoroughly educated, but you can be sufficiently educated to protect yourself from the most common mistakes made by home buyers.

For a brief start, read the http://www.jenman.com/BS_B_13Worst.php">13 worst mistakes made by home buyers.

The book, Real Estate Mistakes, has 60 must-read pages on how to buy well and how to pay less than you may have been prepared to pay. It takes the average reader one minute to read one page of a book. So, take 60 minutes and learn how to save yourself at least $10,000.

The book will cost you about $20 and you can order it by http://www.jenman.com/REMistakes.php">clicking here. Your card won't be debited until a month after you order it. And, if you don't agree that it will save you thousands, just keep it and don't pay.

Also, if you want to devote some more minutes to reading, you should read Terry Ryder's books - Buyer Beware and Property Smart. I think Property Smart is the best book of its kind ever written in Australia (perhaps the world). It is available in most major book stores.

One of the most common comments of buyers who read these books is, "I wish I had read them before I bought a property." So, take their advice. Read them before you buy.

2. What information is available to research the history of prices?

For less than fifty dollars, you can get plenty of information on recent sale prices in any area. In my opinion, the most reliable and trustworthy home price guides are compiled by Australian Property Monitors. Their web site is http://www.homepriceguide.com.au/">www.homepriceguide.com.au.

3. What else should I know?

You may not realise it but you have just asked the best question you can ever ask.

No matter who you are speaking to or what you are buying, you must always ask the question: "Is there anything else I should know?"

Look someone directly in the eyes and say it sincerely. And then, when the answer is "No," move closer, lower your voice and say, "Are you sure?"

You will be astonished at what surfaces when you ask these questions.

Now, to answer the question:

The most important thing that young first home buyers should know is that most of them borrow too much to buy homes that are too big in areas that are too expensive.

Stay away from the over-buying/over-borrowing trap. Go and read Clive Hamilton's wonderful book, http://www.growthfetish.com/">Affluenza. It's a book that should be read by all Australians, particularly those who are just starting out in life.

4. Who and what should I avoid?

Who? Anyone who asks you to sign anything or pay any money before you speak to your own independent legal advisor.

What? Unattractive homes - or those that can't be made attractive. If you don't love the home, don't buy it. If you can't find a home you love, that means you are not following the suggestion in point three (above). Go to a less expensive area.

So, get independent legal advice, read the books and material suggested and then buy a home you love for a price you can afford.

And live happily ever after.

***************

This article was taken from the Questions and comments page of the Jenman website.


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