Leon Chen
Aug 26, 2019
Buying your first home in New Zealand can be overwhelming. There's so much to do and so many people to deal with, from mortgage brokers and real estate agents to lawyers and sellers. Unless you get good advice, you're likely to make some bad decisions. Even the simplest mistake can cost you a lot of money when you're using your savings and a large bank loan to buy a house.
Here are 7 tips to avoid the most common mistakes:
1. Conduct some detailed research yourself.
While conducting thorough research is time-consuming and laborious, especially if you're viewing multiple properties and have a lot of documents to review, carefully researching a property before making an offer is essential. Although websites offer a wealth of information about properties, you must delve deeply into those you intend to buy. The first thing you should thoroughly study is the Land Information Memorandum report, which your real estate agent will provide if you request it. This report provides information on zoning, water supply, valuation, and the property taxes, building permits, and other relevant details for the current year. One of the biggest mistakes first-time buyers can make at this stage is skimming over this information or not asking for clarification. It's important to have this report reviewed by a lawyer; they will help you identify any issues. Another crucial aspect is property ownership, especially if you intend to buy an apartment or unit.
2. Professional home inspection
When viewing a house in an open home, the property may appear to be in good condition, but professional home inspectors are better able to spot potential problems such as dampness, mold, holes in the roof, electrical and plumbing issues, and structural defects. So don't skimp on inspections; a pre-purchase inspection can save you a lot of money. These inspection findings will help you negotiate with the seller, especially if the house requires repairs. If the inspection results are unsatisfactory, you can also move on and look at other properties.
3. The goal is reasonable.
Finding a home that fits your budget and satisfies you is almost an impossible task. Don't set your sights too high; be realistic. Consider properties that have one or two properties that you like. For example, properties that might need some repairs, but which would increase their value afterward. A cost-effective way to increase property value is to repaint and beautify the yard. Planting trees, designing a small landscape, etc., can instantly make your house sell for a better price. Remember, your first home isn't your last; you can change homes later as needed. Typically, people change their first home within five years.
4. Pay attention to your neighbors.
The neighbors around your property are very important. A noisy party animal or a troublemaker next door can turn your life into a nightmare. Go knock on your neighbors' doors, chat with them, and see if they like living there. Buying your first home is a major decision, so you need to be sure. Make sure to talk to different neighbors to get a comprehensive and accurate opinion.
5. Future Development Prospects of the Region
Carefully examine the area, investigate the city council's plans, and assess its future prospects. A planned new apartment building might block your view and sunlight, while a new supermarket could mean easier access to groceries and ultimately make the area more appealing to future buyers, but it could also lead to increased traffic. Some warning signs might include the construction of a waste treatment plant, a highway overpass, a music venue, a prison, a 24-hour bar, or a chemical testing facility.
Some things might not be in your plans, such as having children. But it's also important to consider the childcare services in your area, as well as its educational level and quality. A new daycare center can increase property value, as can a gym. Being able to send your children to a nearby daycare center and walk them to school or the gym, without having to commute by public transport, will increase the value of your house. These are all points that future families will prioritize if you eventually rent or sell your home.
6. Parking situation
Make sure you check the streets around the property at different times of the day and analyze parking conditions. Even if the house you want to buy has a garage, you need to consider whether your friends, family, or roommates have good parking options outside your home. Look at traffic flow, check bottleneck areas, and consider how they will affect you.
7. Commuting costs
Would you only consider a neighborhood because it's cheap? You should think more about it and calculate the commuting costs. Conversely, while living close to your workplace is feasible, you might miss out on other more suitable neighborhoods. What if your job changes location, or you change jobs within a few years? Therefore, you need to consider the area's public transportation: buses, trains, and ferries, or whether there's a park and ride system nearby.