Opinion
The red flags to look out for when buying your first home
By Abdullah Nouh
Interest rates are predicted to keep falling, and that’s encouraging first home buyers to get into the market. But just because sentiment is increasing doesn’t mean you can go out and buy any old property and expect to get a solid asset. Many first-time buyers tend to get emotional and make impulsive decisions that can lead to purchasing a property with a lot of issues or one that doesn’t suit their needs.
Fortunately, there are some red flags you can look out for to make sure you’re not buying a dud and to give yourself the best chance of purchasing a great asset that’s going to increase in value over time.
If a home has been listed for more than 90 days, it’s worth asking why.Credit: Jessica Shapiro
Environmental issues
One of the first things to assess is the environment around the property. Homes near high-voltage power lines or substations often struggle with resale value and buyer demand. While street-level power lines are common and are generally not a concern, anything above should be seriously reconsidered.
You should also check for flood-prone areas, bushfire zones, or homes near noisy industrial areas. These issues may not be listed in the brochure, but they can significantly affect insurance premiums and long-term liveability.
Ask why it’s still on the market
If a home has been listed for more than 90 days, it’s worth asking why. Sometimes it’s an unrealistic asking price or poor marketing. Other times, it could be signs of deeper issues such as structural faults or low-quality renovations.
Always ask the agent: “Why hasn’t this sold?” Their answer can help you decide whether it’s a hidden gem or a property to avoid.
Get a building and pest inspection
This is non-negotiable. Even with newer homes, what you see on the surface can be very different from what’s happening behind the walls.
More importantly, don’t just read the report; be sure to speak to the inspector. Many reports can sound more alarming than they are, especially for first-time buyers. A quick conversation will help you understand what’s truly important and what’s easily fixable.
Also, get a second opinion. Whether it’s a buyer’s agent, your mortgage broker, or a savvy family member, another set of eyes can help you interpret the report more accurately.
Watch for poor renovations or unapproved structures
If the home has obvious extensions, such as enclosed patios or granny flats, check if they were approved by council. Unapproved structures can create headaches later, especially when it comes to insurance or renovations.
Pay attention to workmanship. Uneven floors, mismatched materials or rough finishes could mean corners were cut. Always ask to see the documentation for major renovations.
Keep an eye out for rotten guttering.Credit: Wolter Peeters
Don’t ignore gutters, downpipes and drainage
It’s not glamorous, but drainage matters. Poor drainage can lead to major issues like rising damp, foundation damage and mould. Check the condition of the gutters and downpipes. Are they rusted or broken; are they allowing water to pool near the base of the home? Water should flow away from the property, not towards it.
A well-maintained drainage system is often a good sign that the rest of the home has been looked after, too.
Check the trees
Trees can be beautiful, but they can also cause big problems. Large overhanging branches can damage roofs and fences in storms, while mature tree roots can interfere with foundations and plumbing.
If you’re thinking about future renovations or development, protected tree species (like large eucalyptus) may limit what you can do with the land. Always check local regulations if a large tree is situated in an awkward spot.
Don’t rely on just one inspection
If you’re serious about a property, visit it at different times of the day. A quiet street on Saturday morning might be a traffic jam during the week.
Take note of natural light, airflow, noise levels and general functioning. Staging can be deceiving, so trust your instincts and make sure the home suits your lifestyle and goals.
Be clear on your objectives
The biggest reason buyers regret their purchase is that they weren’t clear on what they needed from the property in the first place. Whether your goal is future growth, rental yield, lifestyle, or flexibility for a growing family, know your “why” before you buy. If the home doesn’t serve that purpose, it’s not the right fit.
Buying your first home is exciting, but it’s also serious business. If you don’t ask the right questions and do the right checks, you might end up with a dud. So take your time, get informed and use professionals who’ve done it before.
Abdullah Nouh is director of Mecca Property Group, a specialist buyers’ agency.
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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