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Colin Hill | 04 Apr 2018 | Advice, First Homes, Property Investing

10 Things You Need to Know When Buying a House

10 Things You Need to Know When Buying a House

Are you ready to buy your dream house? Diving into the property market is a huge decision but also an exciting one. It doesn’t matter if it’s your first or a new addition to the portfolio, the process of buying a house is a lengthy and complicated one.

To ensure you get your desired house without being taken for a ride, we have constructed a list of ten considerations that should be ticked off as you search for your new home.

Are you ready?

The number one question you need to ask! Are you actually ready to purchase a property? Understanding not only your lifestyle requirements but also your financial position is critical. Don’t make the mistake of jumping in too early without careful planning and a full understanding of the massive financial commitment you’re about to make.

Buying a home is a massive commitment, so make sure that you and anyone else involved in the purchase is ready to commit to the property and everything that comes with it.

What is the market situation?

With a market that is prone to peaks and valleys, understanding the current and projected viability of the property market is critical.

The New Zealand housing market, particularly Auckland, has received a lot of attention over the past several years because of its constant fluctuation. It is essential that you study the housing trends or speak to a trusted adviser who can explain everything without the jargon. This will give you a better understanding of when to purchase and when to ride out the storm.

Is the location right for you?

The old saying still stands true today: location, location, location. However, this means more than just buying a property on the beach with spectacular views. Nowadays, this includes schooling zone, transportation routes, surrounding businesses or industries and even the neighbours.

Understanding what your desired location will include is always a smart idea and it will help to guide your search for that ideal property.

Do I know enough about the property?

It’s timeless advice: leave the emotions at the door when purchasing a home. It may be love at first sight, but it’s important that you know and understand both the positives and negatives of each property you are looking at purchasing. This will include knowing the current or potential problems, what may need to be fixed at your expense and the dimensions and orientation of the property.

Should I get a building inspection?

There is nothing worse than buying your ‘dream’ home to find that it’s leaky and requires a complete refurb. That is why getting an unbiased building inspection performed is a no-brainer. Paying for a building inspection is well-worth the money!

The information gathered from this report will provide you with a great understanding of the structural integrity of the property. Understanding exactly what you are looking at purchasing could save you a lot of money and tears in the long run.

What’s included in the title?

Within New Zealand, a property title indicates the legal owner of a property or piece of land and the rights they have over that land. This certificate indicates any rights or restrictions that the holder has over the land and any previous owners.

When purchasing a property, it is vital to understand the rights and restrictions that are held within the title certificate. Ultimately, it can affect what you can and cannot do with the property in the future.

It will also avoid the nasty surprise of finding out your driveway and garden actually belong to the neighbour!

Get a LIM report conducted

A LIM report or Land Information Memorandum report shows all the information that the local council has on the land or property. This will include information including buildings on site, previous ownership, unique land features, building consents and other information regarding the piece of land.

What is the true value of the property?

Make sure you understand the true market value of the property you are about to purchase. In most cases, this will come in the form of a Quotable Value (QV). This is a good tool to have when purchasing a property regardless of the method you choose. As it can be used to shape your decision regarding your budget and what is viable for you.

What is your budget?

Understanding your upper and lower limits financially is essential if you want to find the best value and the right property for you. Setting a reasonable budget that your household will actually be able to manage and live off is critical.

Be realistic about what you can afford and don’t forget to factor in all the extra costs. We may all aspire to the beautiful villa in Ponsonby but if you’re surviving on minute noodles for the next ten years, it’s not really worth it.

Are you able to secure a financial lender?

Once you have decided on the location and type of home you would like to purchase, securing financial backing from a bank or lender is the next step. Ideally, you should aim to get pre-approval from your lender before you start looking at properties so you have a better understanding of what you can afford to buy.

 

If you have any questions regarding this list or purchasing a house, please do not hesitate to get in contact with us. Our experienced advisers will be happy to provide some friendly and free advice.

 

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