Powered by MOMENTUM MEDIA
the adviser logo
Borrower

Lawyers have word of warning for FHBs

by Emma Ryan4 minute read
warning signage

A handful of legal professionals have voiced their concerns for first home buyers after a new survey revealed that they are not doing sufficient research and due diligence before entering the housing market.

Lawyers have warned first home buyers about the dangers of diving into the property market without conducting proper research, noting that they “need to be more savvy”.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

This comes after a GlobalX survey has found that more than 63 per cent of conveyancers, legal professionals and financial advisers notice that despite significant commitment, adequate research is not being undertaken by first home buyers before purchasing their home.

“GlobalX asked more than 100 legal professionals what buyers most commonly forget to do, and found conducting local government checks was the most frequently disregarded consideration, followed closely by building and pest inspections and failing to arrange pre-approved financing,” GlobalX’s Rafe Berding said.

Advertisement
Advertisement

“Despite the easy availability of this sort of information, it continues to shock us that people simply do not find these actions important.

“We would encourage all buyers — regardless of their experience — to do their background checks before making any decisions that are legally binding.

“While buyers will continue to battle rising house prices, those who know — who have researched — and understand the specific strengths and weaknesses of a property will be better placed to make an informed choice.”

Buyer’s agent Braden Corfield, from Sentimio, backed up GlobalX’s claims, adding that most information is publicly available for free; however, buyers simply don’t know where and how to access it.

“It is staggering how the majority believe it is as simple as conducting a building and pest [inspection] and gaining finance before purchasing,” Mr Corfield said.

“The reality is that the lack of proper research and due diligence can have serious ramifications affecting the future development, livability and value of the chosen property.”

[Related: New loan offers deposit-free mortgage to FHBs]

Lawyers have word of warning for FHBs
warning sign ta
TheAdviser logo
warning sign ta

James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark pesce futurist ajxjkn

Automation is changing, not replacing, the role of finance brokers

On Thursday (4 August), the Australian Financial Review (AFR) ran a story with the headline: “Finance brokers top...

READ MORE
des hang carbar zaheer jappie carclarity ta qtvnqr

CarClarity confirms partnership with car subscription platform

Established in March 2020, CarClairty is a finance platform that connects car buyers with more than 30 different...

READ MORE
anthony albanese profile ta vtpifc

Further grants confirmed for flood survivors, $47m pledged

According to a statement released by the federal government, the Back Home grant will be made available to impacted...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more