First Home Buyers

How to get your bond back

5 Tips First Home Buyers Should Consider When Buying a House

If you’re buying a house, New Zealand is the best place to be, because it’s a beautiful and varied country with something for everyone. However, doing this for the first time can be very confusing, but with LJ Hooker we make the buying process as simple as possible. First home buyers can rely on our local knowledge and experience every step of the way. If you are looking to buy a property and take your place on the property ladder, then contact us for first-rate service. 

What Type of Home Do You Need?

The first thing you should consider when buying a home is: Does it live up to your expectations?

You’re making a purchase that will take a considerable amount out of your finances. It will also take time to complete the payments to pay off your mortgage. This is a long-term commitment, and before jumping in you want to make sure you will be happy in the long run. 

So, before buying a house, ask yourself: “Will I like it enough to live in it?”

Come up with a list of what you would like in a house. Do you want a beautiful kitchen? A large living space area? Is it a spacious bathroom complete with a bath? Or would you rather live a modest lifestyle and choose a property to match? 

Remember to consider your budget at all times. Price tags attached to houses will continue to rise on a consistent basis. So, you may not get everything on your list right now, but you can always work your way up until you get it later on.

Take Note: Other factors, like proximity to work and school, should also be put into consideration as well as the distance from your house to essential places like the grocery store or the mall.

Do Your Research

Once you have a pretty good idea of what you want, it’s time to move on to step two—doing your research. 

A basic rule of thumb for all prospective home buyers is to gather as much information about both the location and construction of your ideal home.

There are a few ways you can approach this step. You can physically scope out places you’re interested to live in and go to open homes, search local property listings online, talk to real estate agents and companies to get information about their inventory.

Make sure you include getting info about the place around the vicinity of the house you are buying. A 100-kilometre radius should be a good area to make a good judgement if you’re making a good purchase or not. 

Furthermore, make sure to consider your daily commute from your house to your workplace, the supermarket and other places for supplies and recreation. 

You basically have to get all the details you need to make a proper decision before making the jump to purchase.

Check Your Budget

You now know what you want, and you have all the information you need to make a good decision. Now all you need are the funds to secure the purchase of your house.

Initial assessment of your budget can be done by taking into consideration your gross monthly or annual income and determining your net from there. You should include in your gross income all other profit-generating streams you have. This includes commissions, bonuses, inheritances, profit from shares and mutual funds. 

From your net income, assess how much you are willing to set aside for your mortgage. Make sure to include allowances for your monthly living needs and other miscellaneous expenses.

Ask for Professional Help

Being a first home buyer in New Zealand can be daunting, which is why having a professional by your side is crucial. In this case, you do not just need regular help. You will need to ask for professional help. Your real estate company can help you secure funding through the help of financial institutions they are affiliated with. It would also be beneficial to discuss your options with your bank and an independent certified mortgage broker.

Secure Financing

Not everyone has liquid assets (like a KiwiSaver account), and the fact is that buying a house requires a large amount of money. 

There are many financial institutions that can lend assistance to first home buyers. You will have to shop around before you find the bank that can provide the best deal for you, but do not be discouraged! The key is to find a bank with lending criteria that suits you and to construct a plan for mortgage repayments that accommodates your ongoing financial situation. Make use of mortgage calculators online that include interest rate information to help you calculate repayments.

You do not necessarily have to finance with a regular bank, however; there are many other banks looking to entice first home buyers to open accounts with them. You can get expert advice from a certified mortgage broker.

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