The 36 biggest regrets of first-time home buyers

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 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.

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.

Sometimes it’s best to get a second (or third) opinion when looking at a home. A friend or family member may be able to point out things you didn’t see, such as a land drainage issue, easement or that rising damp in the corner of the laundry.

According to a recent analysis from CNBC, the biggest regret of new homeowners is buying a home that is either too large or too small. Whether you can’t find the room you need for your family, or you realise that you’re paying for square meterage you don’t use, having a home that doesn’t meet your needs is a recipe for frustration. Avoid this issue by buying what you actually need, not what you think you need.

Making the shift from renting to owning can be an exciting way to build long-term wealth, but it also carries certain financial burdens. In addition to a mortgage, rates, taxes and insurance, homeowners also need to set aside money for repairs and maintenance. These ongoing expenses are simply part of homeownership. But if your home’s purchase price leaves you with nothing in the bank, you’ll be in trouble if an emergency occurs during your first months of ownership.

Avoid this issue by keeping an emergency fund (also known as a rainy-day fund or savings buffer) – an amount of money you set aside to help cover the cost of any urgent and unexpected expenses. Having a savings buffer means you won’t need to borrow money if a crisis happens and you need money quickly, says SmartMoney. Saving regularly is the best way to build up your savings balance. Set up a separate high interest savings account for your savings to go into via automated payments set up with your bank. You can also ask your payroll office if they can send part of your pay to your savings account. Then you can set and forget, knowing that your savings are growing without you having to transfer them every time you get paid.

Get estimates for utility expenses from the real estate agents or current or former homeowners. It helps to know how much it’ll cost for water, rates, electricity, gas and other monthly and annual expenses before you move in.

Use colourful garage sale stickers or multi-coloured masking tape to match each moving box with its final destination, such as blue for kitchen, purple for master bedroom etc. This not only helps you on moving-in day, but also removalists or friends helping to unload. Buy a few big, permanent markers and label the boxes with their contents. This will help the inevitable opening a dozen wrong boxes before finding the one that actually contains the coffee mugs.

The minute you walk in to your new home, your mind will be racing with things that need to be done. Keep this overwhelming task list at bay by keeping a notebook in a central location and write down every action you or your family thinks of throughout the day. After 24 hours cut the list off, and prioritise each item with a 1, 2 or 3. The first priority should be items completed that week – such as safety concerns, cleaning, unpacking essentials. Priority two should be tasks completed within the next two months, such as organisation, maintenance, and remaining unpacking. Priority three tasks should be non-essentials, but improvements and projects you’d like to complete within the year – renovations, landscaping and large purchases.

12 home improvement projects that practically pay for themselves.

It’s a small price for peace of mind. Even if the previous homeowner has handed over their set of keys, there’s no telling who else might still have one. A dog walker, a cleaning lady, a babysitter or family member – it’s easy to imagine someone still having access to your new home, so changing the locks soon after moving in will give you security and peace of mind.

Find out what burglars look for before break in to your home.