There’s so much pressure to buy a house, and if it wasn’t stressful enough, everyone from your mum to your hairdresser has an opinion!
While most advice is well-intended, not all of it’s good. Compare the Market surveyed over a thousand Australians and found that hundreds had received poor guidance from “backseat buyers”.
To spare you possible pain, I’m debunking some of the most pernicious and persistent myths that can hurt your chances of getting a home.
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This was by far the most common myth: “hold off on buying, prices are too high”. The advice might make sense if you’re not in the financial position to purchase a property.
But if you’re ready to buy and you’ve found a home you want, then, by all means, make an offer. Trying to “time the market” can backfire on you.
A quick look at the data shows Australian property values have grown exponentially in the state capitals over the past ten years. While markets do have their peaks and troughs, and values occasionally cool, most properties generally increase in price over time.
Getting into the property market is an important life decision but you can’t always wait for Goldilocks prices that are “just right”. Chances are, that will never happen.
Would you buy a car without making sure it’s roadworthy? I don’t think so!
So why would you buy a house without making sure it’s structurally sound and free of destructive vermin? When the cost of repairs can be in the tens of thousands of dollars, “buying blind” is certainly not worth the risk.
Covid-era FOMO put pressure on some buyers to commit to contracts with zero conditions.
A survey of 1,000 homeowners in September 2023 found nearly a third (30 per cent) had rushed into purchases without conducting any due diligence such as building and pest reports, area zoning, local crime and flood map checks.
One Australian specifically recalled being told there’s no need for due diligence because “the house is pretty new anyway”. Even new builds have issues – tradies make mistakes, some building practices are not compliant.
Others were told, “don’t stress about the building inspection. If there’s anything wrong, you can fix it yourself”.
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