One of the least-rewarding duties of mortgage broking, especially in a market like that of Perth, is informing a would-be client that they have been turned down by the lenders. We can’t give specific advice, but we can provide some general reasons why would-be homeowners may want to reconsider their decision to purchase their first home.
Insufficient Funding
Purchasing a home requires a substantial financial outlay. The first obstacle is finding ten percent for the deposit. After the deposit, it is then necessary to sustain a lifestyle that allows finding the capital to make mortgage repayments on a regular basis.
Lifestyle
Sometimes, a person’s lifestyle isn’t amenable to purchasing a home. Someone who is single and on the road for work most of the time may have a hard time keeping up with maintenance concerns. In addition, those who need the flexibility to transfer or relocate may have a harder time doing either when they own a home.
Bad Market
Sometimes, homes in an area will begin to fall sharply in price. While these may appear to be bargains, there is usually a reason for all of the homes in an area becoming devalued. Failure to do one’s “due diligence” and research a market can result in the loss of a lot of money.
Hot Market
Some families may feel pressured to buy because of a “hot market.” Hot markets usually result in higher prices. It is often wise to wait out the market and see where it goes. Sometimes a “hot market” is only temporary and prices fall back to their normal levels.
Renting is a Lot Cheaper
During times when it costs a lot less to rent a home than it does to own a home, it can be wise to reconsider buying. Spending less money for a rental can be a compelling reason to wait out the market for a while longer.
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