Top 10 Apartment Buying Mistakes

Buying a home is the great Australian dream. Many think of it as a form of security, others treat it as an investment, while others just wanted a place they can call their own. Lately, apartments are becoming a popular choice due to the lifestyle trends, high cost of living and sky rocket prices of houses.

Many first-time home buyers and investors alike can get very excited in buying an apartment. I'm not surprised because there are various apartments available in the market, many have excellent presentations. Take note, that I mentioned presentations not features.

This is where every apartment differs, their features. It can include their inclusions, available facilities in the complex and location. A discerning buyer won't easily be persuaded to buy a certain apartment just because it looks like a designer abode. One need to look beyond what the eye can see and have a stronger conviction than what he initially felt when he first saw the apartment.

Most developers recognize the fact that they are competing with other projects, thus they make sure that they have the best presentation by hiring interior designers or home stagers. It is part of their marketing tactics. Thus, having a criterion in place is important, so a buyer can assess a property not because of how it was presented, but because of its positive features and advantages compared to its competition.

As a guide, here are the Top 10 Apartment Buying Mistakes that every buyer should know.

1. Not Organizing your Finances - Finally, you've decided that you want to buy an apartment. However, are you ready for the financial commitment? If you're like most buyers, this means you'll be tied-up to a loan of up to thirty years to pay. Before you buy, organize your finances. Check how much money you earn, how much expenses you have and how much you can actually save. It is easy to say that you earn enough to pay off the loan. However, your lifestyle can make a huge difference. As a reality check, it is best to practice paying for a loan for at least six months. This will give an added boost to your savings while giving you the confidence on how much you can really set aside to pay for your mortgage.

2. Buying out of Peer Pressure - We all love our friends. Our families will always be dear to us. However, you have to remember that it is you who is going to live and pay for that apartment, so make sure it meets your needs and not theirs. An example would be getting a bachelor pad in the same complex where your friends are. Evening get-togethers will be great, but is the space enough when you decide to have a family or even to just add-on more furnishings for your own comfort?

3. Choosing the First Apartment that Caught your Eye - Ok, your friends agree it looks great. But, think twice. Is it because of the interior décor or does it really have a lot of strong points like a good floor plan, great location, quality fittings and excellent facilities within the complex?

4. Jumping into the Ownership Band Wagon Without a Budget in Place - At present you have a decent salary, a great lifestyle, you are living a good life and all that's missing is your own apartment. You've saved for a deposit and occasionally you set aside some money to top it up. The latter is an indicator that you need to tweak your budget a bit more before you decide to buy a property. Once you have a mortgage, you need to be prepared for regular weekly, fortnightly or monthly repayments. Thus, you have to get used to having a regular budget in place that will allow you to meet your monthly and quarterly expenses such as your mortgage, utility bills and strata fees.

5. Buying in a Worn-Out Building - Vintage will always be in fashion for some people, but "old" does not always mean style and quality when you refer to apartments. True, there are some great character buildings out there. However, be wary of the structural defects and other major repairs lurking behind the walls of some old apartment complex. Don't inherit the headaches of the previous owners. Exercise due diligence, have the property inspected by a professional or better yet buy in a new apartment complex where you'll less likely have any unforeseen surprises.

6. Settling for any Location that Fits your budget - How much you can afford is very important in buying a property. However, it should not limit you in your choice of a good apartment. If you can only afford to buy in the least likable areas, don't you think it is worth to wait until you can afford to buy in a better location? Remember, unlike clothes there really is a "No Return, No Exchange" policy in buying a property. Once you buy one, you're committed to it until the next time you sell it. Given the current market conditions, it is not very favorable to buy and sell short-term. You won't be able to recoup all your expenses. You could also risk being worst off financially, than when you first started. If you cannot afford it yet, find ways to earn more money to boost your savings or wait for a great bargain in a location that meets your criteria and your needs, not only your budget.

7. Not checking Out the Neighbours - "Nuisance neighbors" is an understatement for some apartment dwellers that experienced the "lack of consideration" of their neighbors. Noise, junk, bad habits (eg. Alcoholic, domestic violence) are just some of the most common complaints. Unlike renting, you cannot easily give up your apartment to move to another unit. You've worked hard to buy it, so you deserve to enjoy it inside and out. Failing to check your neighbors can be a bad move, especially if you have to deal with them 24/7. I've heard of really horror stories of relationships gone bad, finances drained, and regular police complaints only because of a bad neighbor. Skip the headache, by checking the property on different days and time.

8. No Budget for Contingencies and other Expenses -Having your own property takes a lot of responsibility, especially financially. Aside from your mortgage commitments and utility bills, you also have to set aside some money for the taxes you have to pay, utility connections, insurance, removalist fees and even for some surprised repairs.

9. Buying in an Area that Lacks Public Transport - Another reason why a lot of people are buying an apartment is because of the lifestyle it offers and the convenience of owning one. Some display apartments can easily camouflage a development's lack of much needed facilities such as the availability of public transport. The buyers are mesmerized by the lifestyle it has to offer, only to realize their strife when they have to wait long hours, walk a mile or drive in traffic to get to work. At the end of the day, they cannot enjoy their apartment because they are either to tired from travelling to and from work or they need to catch more sleep because they need to wake up early the following day to get to work on time.

10. Taking the First Mortgage Proposal Served on Your Plate - Admit it, we all get excited if we get approved for a loan, much so if it is for your home loan. In your excitement, it is easy to miss the fine print and sign the first mortgage contract offered to you. This joy can easily turn to regret, once you realize that there are better loan packages available in the market. This could mean thousands of lost savings in interest or even lower repayments. Thus, before you commit yourself to a loan agreement, shop around. I'm sure the banks and other lenders would love to have your business as much as you want them to approve your loan.

I hope you find these tips useful. Sometimes, it is better to know what not to do, than what you have to do when it comes to buying an apartment. You will realize that in the buying process, you will meet a lot of professionals from real estate agents, mortgage brokers and solicitors who can guide you. However, very few will be able to share to you their bad experiences and things they wish they knew before they bought their first property.

In RK Realty Group, we aim to be different by helping our clients "Make the Right Choice". We are not only here to sell you any apartment, but we are here to help you find the best one that will meet your needs and match your requirements. Our true measure of success is not only in the amount of properties we sell, but also in the number of happy clients we have.

If you like this article, check out our website http://www.rkrealtygroup.com.au for more real estate tips, news and insights. You can also checkout our "Featured Properties" for some of the best available apartments in the market. Why not get to know us more in our "About Us" page and "RK Real Estate News Blog". Meanwhile, take advantage of our "Resources" page for more real estate tools. Better yet, give us call or leave us a note in our "Contact Us" page, so we can know more about you and your real estate requirements.

We look forward to hear back from you.

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