Avoid These Property Inspection Mistakes as a First Home Buyer

Buying your first home is one of the most significant financial decisions you'll ever make. While securing the right home loan and understanding first home buyer eligibility are crucial steps, conducting a thorough property inspection is equally important. Many first home buyers in Kew and surrounding areas focus heavily on their first home loan application but overlook critical property inspection details that could save them thousands of dollars.

At Traj Finance, we work with first home buyers throughout the entire home buying process, from understanding first home buyer grants to ensuring your property inspection protects your investment. Here are the key property inspection mistakes to avoid when purchasing your first home.

Understanding Your First Home Buyer Budget Before Inspections

Before you attend property inspections, it's essential to understand your borrowing capacity and first home buyer budget. Many buyers fall in love with a property during inspection, only to discover it stretches their finances too thin. Your first home buyer budget should account for:

• The property purchase price
• First home buyer stamp duty concessions you may be eligible for
• Building and pest inspection costs
• Lenders Mortgage Insurance (LMI) if you're using low deposit options
• Ongoing maintenance and repairs identified during inspection
• Conveyancing and settlement costs

Knowing whether you're working with a 5% deposit, 10% deposit, or gift deposit will influence how much buffer you need for unexpected repairs discovered during inspection.

Mistake #1: Skipping Professional Building and Pest Inspections

The most significant mistake first home buyers make is foregoing professional inspections to save a few hundred dollars. A building and pest inspection typically costs between $400 and $600 in the Kew area, but it can reveal issues worth tens of thousands of dollars.

Professional inspectors assess:

1. Structural integrity of the building
2. Roof condition and drainage
3. Electrical and plumbing systems
4. Pest damage, particularly termites
5. Water damage and dampness
6. Safety hazards

When you apply for a home loan, lenders want to ensure the property is adequate security. Significant structural issues can affect your first home loan application and may require you to reconsider your home loan options.

Mistake #2: Attending Inspections Without a Checklist

Walking through a property without a systematic approach means you'll likely miss important details. Create a comprehensive first home buyer checklist that includes:

• External condition: roof, gutters, walls, foundations
• Internal condition: ceilings, walls, floors, windows, doors
• Heating and cooling systems
• Kitchen appliances and condition
• Bathroom condition and water pressure
• Electrical switches and outlets
• Storage space
• Natural light and ventilation
• Noise levels from neighbours or streets
• Mobile phone reception

Take photos and notes during each inspection. When you're viewing multiple properties, details blur together, and your checklist will help you make objective comparisons.

Mistake #3: Only Inspecting Once and at Convenient Times

First home buyers often view a property only once, typically at a scheduled open inspection during ideal conditions. To truly understand a property, visit it:

• At different times of day to assess natural light
• During rainy weather to check for leaks and drainage issues
• On weekdays and weekends to gauge neighbourhood noise
• During peak traffic times to assess commute impacts

Multiple visits reveal patterns and issues that a single inspection might miss. This is particularly relevant in Kew, where proximity to main roads and public transport can significantly impact your living experience.

Mistake #4: Not Researching the Property's History and Area

Beyond the physical inspection, research the property's background and the local area. Check:

• Previous sale prices and how long it's been on the market
• Council rates and any upcoming developments or zoning changes
• Flood mapping and bushfire risk areas
• Proximity to amenities, schools, and transport
• Neighbourhood demographics and crime statistics

For Kew residents, understanding local council regulations and future infrastructure projects can affect your property's long-term value. Our team at Traj Finance has extensive knowledge of the local market and can provide insights beyond standard property inspections.

Mistake #5: Ignoring Strata Reports for Apartments and Townhouses

If you're considering an apartment or townhouse, the strata report is as important as the building inspection. The strata report reveals:

• The financial health of the owners corporation
• Any upcoming major works or special levies
• Current disputes or legal issues
• Building insurance coverage
• Past maintenance and repairs

Some lenders have specific requirements for strata properties when you apply for a home loan. Issues revealed in the strata report can affect your first home loan approval or the terms you're offered.

Understanding How Property Condition Affects Your Home Loan

The property's condition directly impacts your home loan options and interest rate. Lenders assess the property as security, and significant defects can lead to:

• Lower valuation than the purchase price
• Higher Lenders Mortgage Insurance (LMI) premiums
• Requirements for repairs before settlement
• Reduced loan-to-value ratio (LVR)
• Limited access to low deposit options like the First Home Loan Deposit Scheme or Regional First Home Buyer Guarantee

If you secure pre-approval before finding a property, remember that approval is subject to a satisfactory property valuation. Your mortgage broker can help you understand how inspection findings might affect your first home loan application.

Negotiating Based on Inspection Findings

A thorough inspection provides leverage for price negotiation. If your building inspection reveals:

• Structural issues requiring repairs
• Outdated electrical or plumbing systems
• Pest damage or evidence of water damage
• Safety hazards that need addressing

You can request the vendor to either complete repairs before settlement, reduce the purchase price, or provide a credit at settlement. In the current market, many sellers are willing to negotiate, particularly if the inspection report provides documented evidence of issues.

Your negotiating position is stronger when you have pre-approval for your first home loan, demonstrating you're a serious buyer who can proceed quickly once terms are agreed.

Considering Interest Rate Options and Future Renovations

When inspecting properties, consider not just the current condition but potential renovation costs. Understanding your home loan structure helps you plan for improvements:

• A variable interest rate with an offset account provides flexibility for saving renovation funds while reducing interest
• A fixed interest rate offers certainty for budgeting future works
• Some lenders offer interest rate discounts for owner-occupiers
• Redraw facilities allow you to access extra repayments for renovations

If you're considering a property requiring significant work, discuss renovation financing options with your mortgage broker. Some home loans include features that accommodate planned improvements, and understanding these options helps you make informed decisions during property inspections.

Creating Your Property Inspection Action Plan

Developing a systematic approach to property inspections protects your investment and ensures you're making informed decisions. Your action plan should include:

1. Obtain pre-approval to understand your budget and strengthen your negotiating position
2. Research first home owner grants (FHOG) and first home buyer stamp duty concessions you're eligible for
3. Create a detailed first home buyer checklist for inspections
4. Arrange professional building and pest inspections for properties you're seriously considering
5. Review strata reports thoroughly for apartments and townhouses
6. Visit properties multiple times under different conditions
7. Research the local area and property history
8. Use inspection findings to negotiate price or terms
9. Ensure your home loan application accounts for any required repairs

At Traj Finance, we support first home buyers throughout Kew and surrounding suburbs with tailored advice on home loan options, understanding first home buyer eligibility requirements, and structuring your finances to accommodate property condition issues. We can help you understand programs like the First Home Super Saver Scheme and ensure you're maximising available first home buyer grants and concessions.

Property inspection is not just about identifying problems - it's about making an informed decision that protects your financial future. By avoiding these common mistakes, you'll approach your first home purchase with confidence and clarity.

Ready to start your first home buying journey with expert guidance? Call one of our team or book an appointment at a time that works for you. Our experienced mortgage brokers will help you understand your home loan options and support you through every step of buying your first home.