First Time Buyers Need To Get It Right!

AucklandWith the property market showing signs of improvement and First Time Buyers out looking for property I thought it might be useful to share my experiences in the current market.

A few helpful tips when you are looking to buy.

Start looking when you know what you can borrow and at what cost. Sounds simple but a lot of people make offers on property only to find they can’t get or afford the mortgage.

Check the property carefully. I recommend a full building inspection and a thermal imaging report. Yes they cost money, but look at it as insurance, too many people end up with huge bills for maintenance that they hadn’t bargained on.

We all ‘fall in love’ with property, it’s often an emotional purchase. Try to remember it’s probably the largest financial commitment you will ever make.If a report on construction or area comes back negative, walk away. If you don’t you may have issues selling in the future.

Finance approvals can be conditional. Always make sure your Bank account conduct is perfect. No unauthorised overdrafts or returned debits as this will affect your approval!

Look at low rates now as a bonus and try to over-pay. This will not only reduce your mortgage (and so the interest you pay) but also makes sure you are protected for when rates rise….which they will.

‘Do ups’ rarely make bargains. There is usually a reason behind the ‘do up’ and if professional house renovaters have not bought it, then perhaps you shouldn’t either!

Make sure you have enough money not only for the deposit, but for the extras that always come up. Legal fees, builders reports, maybe Registered Valuation. Up to $3,000 can be spent before you know it!

And finally. Real Estate people are Sales people! They act for the Vendor and not for you, so be aware and ask heaps of questions before signing on the dotted line. Always make your offer conditional on Finance, LIM and Building Inspection. Good luck!