Financial Mistakes First-Time Homebuyers Must Avoid

Outlook Money

Common Home Buying Mistakes

Most first-time homebuyers make mistakes that will put them under stress and financial pressure. Stay clear of these five frequent mistakes to have a seamless home purchase.

Overstretching Your Budget

It is easy to be caught up in the thrill and purchase a larger home than your budget, but overstretching your finances can create financial stress. Be comfortable with a budget that is relative to your earnings and long-term objectives.

Overlooking Extra Expenses

Buying a home costs more than the purchase price of the property. Do not overlook hidden expenses such as stamp duty, solicitor's fees and utility connection.

Choosing the Wrong Loan Terms

Compare prices of properties in the locality before buying one. Not doing so may lead to a great amount of spending on a property which affects your financial condition.

Not Comparing Property Prices

Stamp duty and registration fees are usually under-estimated. Don't forget to include these expenses in your budget and claim tax deductions if they are available in order not to incur a sudden financial burden.

Ignoring Tax Considerations

Don't forget to budget for stamp duty and registration fees. You can claim tax deduction on home loan interest, principal repayment, and stamp duty.

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