There’s nothing wrong with chasing the great kiwi dream – after all, owning a home is an investment and a place you can truly call your own.
Getting on the property ladder doesn’t need to be an unattainable dream. Instead, by following the right steps you too can own your perfect first home.
Before doing anything else, you must first assess your finances to work out what properties you can apply for, and how much financial help you’re entitled to. This can be done by calculating your debt to income ratio:
Monthly expenses/pre-tax income = debt to income ratio percentage.
This figure lets banks or lenders see what you can afford in the way of mortgage payments.
Mortgage lenders can help you with these calculations and find out if you can get pre-approval for a home loan.
Although extremely exciting, buying a home (first or not) doesn’t come without piles of paperwork. From covenants to easements, the legalities associated with buying a home can confuse the best of people.
Therefore, before purchasing a property, it’s important to get independent legal advice. Not only can a conveyancer help with the fine print details from complex reports and documents, they can also ensure all legal processes are followed. As purchase agreements are legally binding documents, it’s important you feel confident with every part of the process before signing.
When deciding on the property type for you, consider the following factors:
Due diligence refers to conducting research about the property type itself and factors relating to it. Below are some of the most important factors buyers should consider before purchasing:
These questions are all important when considering the type of property you need and want. From here, you’ll be able to shrink the pool of eligible properties, making your choice a lot easier.
While you think you may have found your dream home online, in real life, properties can look a lot different. This is where open homes come in – they give buyers the chance to view the home in the flesh and help envision whether they could live there or not.
However, it’s important to make a plan in advance and consider the following:
Once you’ve found the house of your dreams, it’s important to make the property agent aware of your interest. From here, you can go through the legal documents with your conveyancer before heading to auction.
At auction, grab your bidder number and wait for proceedings to begin. Regardless of what happens during the auction, it’s important to know and stick to your budget throughout. If you secure the highest bid, you’ll be asked to sign the sale and purchase agreement and pay the purchase deposit. The remaining amount must be paid on the settlement date stated in the agreement. On the same settlement day, you’ll get the keys to your very first property, ready for moving in.
From here, you can work on making this house your own home, complete with all of your personal touches and tastes.