Ready to take the big leap and purchase your first home? Or maybe you’re in the market for an investment property. Whatever your goals may be, our team are here to assist you through your real estate journey. Here are a few things to consider before you start.
Budget
It’s a good first step to look at your finances and determine what you can realistically afford. In addition to a home deposit and mortgage repayments, don’t forget to factor in expenses such as lawyers, building inspections, and home and contents insurance. Consider your income and spending, and compare this with the amount you have currently saved for your new home (this is your deposit).
There are plenty of free online tools to help you establish a budget. A good place to start is sorted.org.nz.
Home loan pre-approval
Once you’ve created a budget, ask your bank or mortgage broker how much you are eligible to borrow and enquire about home loan pre-approval. The amount you can borrow will depend on factors such as your income, the value of the home you want to purchase, the value of your deposit, and your ability to repay the loan.
Pre-approval makes the process of formally taking out a home loan quicker and much easier. It also puts you in a better position when it comes to negotiating.
Solicitors
When buying a home, seeking legal advice is recommended. Lawyers are useful in conveyancing — the process of transferring titles. They may assist you by reviewing the contract of sale, mortgage documents, and property reports. Having a lawyer involved ensures that legal processes are followed correctly.
Finding and inspecting your new home
House-hunting is the most exciting part of the home-buying process for many people. Start by viewing our listings. When narrowing down your search, consider the following:
• What type of home do I want?
• What areas do I want to consider?
• Is now a good time to buy?
• What can we afford in our area(s)?
• What are the demographics, schools, etc. like in the area(s)?
Explaining the specific requirements for your new home to an experienced sales consultant can enable them to recommend houses that may be perfect for your needs. Find a local Renexus team member to assist you on your search.
Inspecting a potential property is imperative to avoid costly problems in the long run. We recommend inspecting the property in person if you are able to do so. You may want to consider aspects of the property such as building materials, construction, damage, plumbing, insulation, ventilation, heating, gas outlets, power points, and drainage/spouting. Don’t forget to think about neighbours, location, and nearby amenities or inconveniences.
It’s also important to ensure that building and pest reports are done before making an offer, in order to avoid unpleasant surprises later on. You may also consider purchasing a Land Information Memorandum (Council LIM Report) that details land features, rates, the title, plans for the future, building certificates, and storm water and sewerage.
In addition to the above, a property valuation can be a good idea for providing insight into the property’s market value.
Looking for an investment property?
Finding the right investment is the key. A Renexus team member can assist you with finding the right property, property investment strategies and financing options
We recommend that anyone planning on buying a property for investment obtain expert advice from an accountant and finance broker. Renexus salespeople will connect you with the finance and tax specialists for assistance with becoming a property investor.
A Renexus team member will take you through:
• Current local rental market facts
• Legislative requirements and changes
• Maximising yield
• Investment strategies
Making an offer
A formal offer is best made in writing and a contract is usually given to you by your sales consultant, who will then present the contract to the seller.
Offers come in two kinds: conditional and unconditional. Unconditional offers are offers that simply adhere to the terms set out in the contract, whereas conditional offers have extra conditions attached that must also be satisfied in order for the sale to take place (e.g. your building report must be satisfactory).
Buying at an auction
Auctions are excellent for revealing the true market price of a property.
Sales through auction are unconditional and a successful bid is final, so before you head to an auction it’s important to have your all finances organised. At the fall of the hammer, you’ll have to have up to 10% of the sale price ready to access.
Having thoroughly inspected the property and liaised with your lawyer ahead of time, the auction process should go much more smoothly. Before you go, familiarise yourself with the auction documents and make sure you understand the conditions of sale, including the possession date, deposit, list of chattels, and balance of payment.
Settlement day
The day that you pay the balance for the property is known as the settlement day. This is usually the same day that you receive the keys to your new home.
Time to celebrate the purchase of your new property!