While it is a very exciting time when purchasing a property, there are some common traps that can often set you back or change things dramatically for you.

Overcommitting – Determine what can you afford, look at what the bank will lend you and what those repayments will be. How will that effect your cash flow moving forward? And what happens if things change? You need to consider how you will combat that and so forth. This will help you to ensure you’re not overcommitting yourself.

Purchasing Entity – What entity will you purchase the property in? Will it be your individual name, joint names? If the property is purchased in joint names will the loan be set up as tenants in common or joint tenants? Will the property be purchased in a Company or trust and what are the implications attached to each of the entities, what are the differences and what is best for your requirements.

Hidden Costs – Not being aware of all of the costs involved in purchasing property could leave you short at settlement. Make sure you are asking the right questions and finding out the additional costs involved in purchasing a property, for example, stamp duty, solicitors costs, bank charges.

Taking the time and making the effort to research will pay dividends both financially and emotionally.