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Five things homeowners wish they knew before they bought their first home

Written by Posted On Tuesday, 14 January 2020 08:01

Buying a home can be exciting, but it is also a big responsibility and comes with a number of challenges. Many homeowners would love the power of hindsight after they have bought their property to understand what they could do differently. Here we take a look at five things homeowners wish they know before they bought their first home.

  1. You already need to be thinking about re-sale value

It might surprise budding homebuyers to learn that that not only need to think about the cost of their home right now, but they also need to consider what its re-sale value is going to be when they come to sell it. This is why it is so important to have a long-term plan – if you are planning to sell in two, four, or ten years, you need to think about what you expect it to be worth at that point.

Consider things like the area that you are buying – is it currently making improvements that will see the value of properties rise? Also, what changes are you planning to the property over that time? If you are planning to sell in four years, but aren’t planning any upgrades or changes in that time you’ll need to accept that the value might be unlikely to change, or even slip a little.

Even when you are buying a home to live in with your family, you need to think about it as an asset that will eventually be sold. Does it have curb appeal? And if not, what can you do to change it so that it does.  

  1. It’s worth getting an asbestos survey

Many buyers believe that because the lender carries out a survey (known as a mortgage valuation) and it comes back approved, there is no need for them to have any further investigative surveys carried out. The truth is that this type of valuation is not the same as having a surveyor thoroughly investigate your property.

So, you may wish to select a homebuyer survey, which can be extremely helpful. However, these are actually fairly standard surveys that won’t specifically look out for major issues in properties, such as asbestos. For this, you may need to also have an asbestos survey conducted. If the property you are looking at was built before 2000, then it may contain asbestos. Asbestos can be very expensive to deal with, so if there is asbestos in the property it is crucial you learn about before you make the purchase.

  1. Renovating can get very expensive

It is the plan of many homebuyers – pick a property where you love the location and size, but that needs repairs. This gives you the opportunity to renovate the home, enjoy living it in, and then sell it for well beyond the price you paid. And while this can be a very good idea that is extremely effective, it can also get rather pricey.

Yes, you can significantly improve the value of the property, but this can also get expensive. It is often the case that in the process of fixing a problem or making a change, you’ll find something else that needs to be altered. This builds up over time and it is important to ensure you aren’t spending so much that it eats into your profit.

  1. You’ll need to budget for fixes

You will need to set aside money for everyday repairs and fixes. There is a popular adage that says that yearly repairs will probably cost around 1 per cent of the price the property. This is something that new homeowners might not realise, especially if they are used to renting where they will have had a landlord who pays for all of the necessary repairs.

It is a great idea to set aside some money every month so that when the inevitable happens and you face two bills at once, you’ve a little extra in the bank to pay it. It might seem like a small thing but it is definitely worth it.

  1. Find tradespeople you trust

It is often the case that when new homeowners make renovations to their property, they need to bring in outside expertise. This can involve working with tradespeople such as painters, decorators, plumbers, and electricians.

But it is absolutely vital that you work with people who you can trust, and who you know will get a great job done. It’s important to do your research into the people you are going to be working with, and select those known for doing a great job.

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