Jigar Modi

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What do first home buyers miss that costs them later?

By Jigar Modi, over 15 years in lending

The short answer

Usually something they didn't know to ask about. Smart, careful people get caught by blind spots, not by being careless. You can't ask about something you don't know exists. The most useful preparation is finding the right questions before you need the answers.

2004: four credit cards and no car

In 2004 I had four credit cards, over $15,000 of student debt, a new job and no car to get there.

A finance guy at a car dealership looked at the mess, rolled it all into one and got me the car.

I could finally breathe again.

I hadn't known that was possible. I didn't know what to ask. A stranger did. Being that finance guy for other people is a big part of why I do this work.

Blind spots I see often

These come up again and again with first home buyers. None of them are hard. They're just easy not to know about.

  • Costs on top of the price. Stamp duty, legal fees, inspections, moving and the first few bills.
  • What a pre-approval isn't. It isn't a promise. The property, the valuation and your circumstances on the day still count.
  • Auctions. Usually no cooling-off period. You're committed when the hammer falls.
  • Scheme caps. Some government schemes have price caps. Going over can change the whole deal.
  • Building and pest checks. What they found, and what they weren't able to check.
  • Apartments and townhouses. The strata records, levies and any planned works.

How to find your own blind spots

Talk to people who've just been through it, and ask what surprised them. Read the first home buyer guide end to end. And ask anyone advising you a simple question: what should I be asking that I haven't?

Jigar Modi

About Jigar Modi

I came to Australia in 2000 as a student with $850. I've worked inside two major banks and spent over 10 years in mortgage broking. That's over 15 years in lending, and more than $450M in settled lending.

Founder of First Home Ready. I help Indian professionals and families avoid costly financial mistakes before they sign. Read my story

Related questions

Got a question you'd like answered? Email jigar@jigarmodi.com.au. I read every one, and the best ones become pages like this.

This is general information, not personal advice. Rules change, so check what applies to you now.