Research by AlphaBeta shows millennials to be savvy spenders when compared to the generation before.

And though they now make up nearly half of Australia’s workforce and are good at budgeting, rising house prices, underemployment, stagnant and in some cases, declining wages means millennials also have lower borrowing capacity when buying property when compared to generations passed.

For millennials entering the property market today, houses cost eight times the average household income and for some first-time property buyers, this means finances may be stretched.

Unfortunately, some millennials think ‘YOLO’ when entering the property market and end up making these 2 common mistakes;

1. Starting a major renovation on settlement

This is the biggest mistake that many first home buyers make when buying a house that needs bit of tidying up.

While it’s sounds like a great idea to get all of the annoying home renovations out of the way at one time, taking on too many home improvements at one time is a sure way to become overwhelmed with your new home before you’ve even truly had a chance to unpack.

Instead, only focus on the repairs that are absolutely necessary to make your home liveable. Then, live in the space for a few months before taking on any cosmetic fixes. Living in your home may open your eyes to better repair scenarios than you had originally envisioned.

Then, when it’s time to tackle those upgrades, take on one project at a time. Remember, presumably you’ll be living for at least the next few years, so you have time to make your mark.

2. Not planning for the future

Let’s be honest for a second: It’s very unlikely that your first home will end up being the home you live in until you become old and grey. In a few years, you may need to relocate for a job or you may need more living space as your family grows.

That’s why when buying your first home you should focus on resale value. While it’s obviously important to find a home that you love, you should also focus on finding one that will appeal to others, if you need to sell it in the future.

As for what counts as resale value, think about things that appeal to the next generation of first-time homebuyers. Consider this, your first home may end up being someone else first home as well. Things like proximity to shops and restaurants, curb appeal, and neutral upgrades tend to have mass appeal.

Buying your first home is exciting, nerve-racking, and downright terrifying all in one, and it’s also a once-in-a-lifetime experience and at loansHub, we are here for you every step of the way to ensure that you get a better home loan for life.

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This article via Freshome does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.