Misjudging your deposit amount
It’s easy to borrow money from your bank, but it’s hard to pay it back. While it’s tempting to use a loan for your entire deposit, first-timers should be wary of mortgage fees. Your best bet is to create a budget for all home expenses, as well as monthly bills, groceries, insurance, etc, so you have a better idea of what you’ll actually be able to afford for a deposit.
You don’t know the area
You shouldn’t just love the home, you should also love the neighbourhood. Not knowing the area and feeling unsure about the neighbourhood can be red flags for home buyers. If you think you’d like to buy in a certain neighbourhood, rent first to see if it feels safe and suits your lifestyle.
Appreciation isn’t guaranteed
Since housing markets go up and down, it doesn’t mean that when you’re ready to sell you’ll make money. Appreciation isn’t guaranteed when it comes to residential real estate, so consider the long-term when buying.