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”.
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.
“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.”
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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