Buying your first home should be the start of many happy years spent enjoying your investment, however, many first-time homebuyers find themselves facing unexpected challenges.

This is according to Arnold Maritz, Co-Principal for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs

“First-time home buying comes with many learning experiences, and while some mistakes are inevitable, knowing about the most common regrets and how to avoid them can empower buyers to make wise, confident decisions,” Maritz said.

Maritz shares six of the biggest regrets first-time homebuyers face and offers advice for how they could have approached these decisions differently.

Underestimating homeownership costs

For many first-time buyers their sole focus is the purchase price of the property but they often overlook other expenses like property taxes, homeowner’s insurance, repairs, maintenance, and Home Owners Association fees.

Renier Kriek, managing director at Sentinel Homes said: “Owners - especially first-time buyers - need to be aware of their tax obligations and plan their property investments accordingly.”

“First-time buyers should calculate a realistic budget that includes all ownership costs and set aside additional funds for unexpected repairs or emergencies,” Maritz said.

“It's wise to speak with current homeowners before putting in an offer and, if necessary, financial advisors to get a clearer picture of monthly and annual costs beyond the bond repayment.”

Overextending their budget

First-time buyers regret spending close to their maximum budget, as it leaves them with little financial wiggle room.

Buyers should aim to buy a home comfortably below their top budget which will allow them to have funds left for unexpected expenses, emergencies and long-term savings goals, according to Maritz.

Maritz said: “Using the 28/36 rule—keeping monthly mortgage payments below 28% of gross income and total debt payments below 36%—can help maintain financial balance.

Not considering future needs

Maritz said that first-time buyers are often eager to find a property quickly or may fall in love with a home without taking future needs into consideration.

However, they often overlook factors such as proximity to quality schools, space for a growing family, or the potential need for work-from-home areas.

This can cause them to end up feeling constrained by a home that does not evolve with their life changes.

“It’s essential that buyers should think ahead and consider potential lifestyle changes, like marriage, children or career shifts,” Maritz said.

“Choosing a home with extra rooms or flexible spaces can accommodate future needs without forcing a premature move or renovation.”

Overlooking resale value

Buyers who neglect factors like neighbourhood development, proximity to schools and property condition may face difficulties down the road when it’s time to sell.

“It’s important to do your homework. Research the current market and the long-term potential of the neighbourhood and surrounding areas,” Maritz said.

“Consulting with a local estate agent can provide insights into neighbourhoods with strong resale value and will help you make a sound investment that will pay off in the future.”

Not shopping around for a mortgage

Buyers assume their bank will offer them a competitive rate or they will accept the first offer they receive without comparing interest rates, terms or loan types from other lenders.

Accordin to Maritz, buyers should always shop around and compare bond options from multiple lenders as it can lead to better interest rates and save them money in the long term.

Working with a bond originator or using online comparison tools can streamline this process and ensure that buyers get the best deal.

Underestimating a fixer-upper

It’s unfortunately common for first-time buyers to regret taking on a project that ends up being tougher and more expensive than they thought it would be.

“Go in with your eyes wide open. Research the costs involved in the upgrades you plan to do and make a real assessment of your skill set and resources. If you don’t have the ability, time or money to put into the work, don’t buy a house that requires it,” Maritz said.

IOL Property