Buying a home comes with highs and lows and there are many things that you will have wished you’d have known before you’d taken the plunge and bought your first home. If you’ve not yet purchased your first home but you are about to, we will outline 9 things that you need to be aware of before you take the leap.
When you buy a property, you need to remember that it’s one of the biggest purchases that you will ever make. Therefore, getting your finances in order is one of the best ways of reducing the stress linked to buying. Kiwisaver for first home buyers is a great way to start putting some money away. It can also be referred to as first home Kiwisaver, depending on the lender that you approach.
It is often a worry for first time buyers when they think about the amount of money that they need to borrow in order to purchase their first home. What you have to appreciate is that home loans are over a longer period of time than standard hire purchase. Houses to buy in certain areas may carry greater financial risk to a lender which means they could offer higher interest rates. Pre-purchase inspections are vital as this will give you and your lender lots of detail about what you are about to purchase. The final point to take into account when it comes to price is that mortgage brokers are on hand to be able to get you the best deal, with the lowest fees and the most favourable interest rates.
We can be very picky when it comes to picking an area to live. It’s not unusual to turn out noses up to areas that we don’t want to love but this may not be a great decision. It may be that these areas that you have decided that you don’t want to live in areas that will suit you when it comes to prices and especially if you are looking to purchase a property when the housing market is booking and the prices are at their highest.
It’s important to do your homework and research what you are thinking of purchasing your first home. Look into freeholds and leaseholds and look if there are any new plans in place in the area which may affect your home.
When you have decided to purchase your first property, it is easy to get carried away with certain aspects. However, it is also easy to be put off by the interior design and style that’s been put in by the previous occupier. For example, if you have a bright pink bathroom, this is an aspect that can easily be changed and shouldn’t influence your decision to purchase the property.
When you have the excitement of buying your first home, you will have usually looked through the local press, estate agents and online. You will be presented with the buying prices of a property but you have to be aware that there are a number of fees that you will need to factor in to the buying process of your property. If for example you have a property worth $200,000 and that is at the top of your budget, you may need to consider looking at a cheaper property so that you can afford to pay the fees that come with the purchase of a property. Government and solicitor fees are the main fees that you will encounter.
- Be Prepared
Buying a home doesn’t happen overnight and you need to be prepared for this. It can take months for the whole process to complete.
Never undervalue what you will get out of an experienced agent. The agent is there to help you find a home that you want and the process of getting it for you. An agent can also provide you with important advice, answer any questions that you have, negotiate where necessary, clear up any problems and point out any issues with the property. It’s worth looking for a recommendation when it comes to finding an agent and then meet the agent in person so you can get a feel for them yourself.
- Buildings Insurance
It may seem obvious to some but getting your building’s insurance in place is often a prerequisite to a mortgage offer. You may not be aware of this but you become liable for the building as soon as you change contracts and not the day that you move in. Building insurance doesn’t only cover your building, it also helps to cover any damage to other property which is caused by your property. Some policies also provide you legal cover in the event that anybody suffers from an injury whilst in your property.
- Rental Market
If you’ve decided that you want to buy your first home for rental reasons, it is advisable to undertake a rental appraisal before you make any purchase. You can carry out a rental appraisal online if that suits you better. There are other important areas to consider when renting out a property. For example, getting in touch with a local estate agent to get advice on potential rental incomes. If you have gone beyond that stage and are looking at prospective tenants, it is important that they are vetted properly i.e. credit checks and referencing. Before you rent out your home, it is important that you make sure that all local legislation has been adhered to, even if this means going as far as conducting a meth residue drug test as you may not know the history of the property you have bought. Here’s some other signs to look for in a meth lab house.
These 9 areas are worth having at the forefront of your mind when it comes to purchasing your first property so that you don’t make the same mistakes as other first-time buyers and end up regretting your decision because you didn’t take any advice into account from the beginning.