Residential -
First time buyer? Here are your top tips for purchasing a home
With intimidating interest rates, high property prices and changes to lending policy, trying to buy a home for the first time can be both an exhilarating and equally nerve-wracking experience.
There’s lots to consider, and often it can be hard to know where to start. But Amy Stevens from Slice says there’s a few simple things that can make the process a lot easier and has broken down her top eight tips for navigating the market as a first home buyer.
1. WORK THROUGH YOUR BUDGET
Stevens says the first and best place to start is by assessing your finances, so that you can work out exactly what kind of property is within your reach.
“The first milestone is to work through your budget, working with a financial advisor.” You can learn more by speaking to a financial advisor at Vega.
Getting a clear picture of what you can afford means you can be targeted and realistic in the search for your new home.
2. MAKE THE MOST OF THE MARKET
Stevens says right now is a great time to buy, and if you can afford it people should take advantage of the market.
”There’s not as much competition in the market right now, so it’s a really good time to look at properties and get the benefits of a lower purchase price. It's also far less stressful than it is when you're in a hot market.”
You also don’t always have to go to auction either, and can make offers.
“The best way to make an offer is just by completing a sale and purchase agreement even if it is conditional. But actually, putting that in writing so that the vendors take you seriously while negotiating.”
3. USE YOUR TIME TO NEGOTIATE
Speaking of negotiating, it’s important to use your time wisely to hone your negotiation skills and put offers in to strike a deal.
“Remember that those offers need to be conditional so that you're not bound to continue with the purchase before doing your due diligence.”
Stevens also says don't be afraid to come in low.
4. GET A PROPER VALUATION
It’s important to base purchasing decisions on a proper valuation too.
“Don’t use homes.co.nz, don’t use Trade Me, get a proper valuation." Get a valuation from Bayleys here.
“That will give you an indication of the real price value of that property.”
5. EXPLORE YOUR DEPOSIT OPTIONS
Stevens says it’s a good idea to check out low deposit options.
“Which can include going to the bank now, NZ Housing Foundation, or purchasing with family or friends.”
“I think it’s important to encourage those who think that buying a house is further away than it is that there are some options that are worth exploring.”
Stevens says a lot of buyers they’ve assisted have been able to buy with a deposit as little as $40,000.
6. USE AVAILABLE RESOURCES
Taking advantage of the available resources will also be a huge help in the purchasing process.
“There’s free online tools that people can access. One of ours is a workshop which is quite useful.”
7. STRUCTURE YOUR MORTGAGE SENSIBLY
If you’re watching interest rates and expecting them to go down, remember that you can split your mortgage and hedge your bets.
“50% you could fix longer term, and 50% you could fix over a shorter term.”
8. NEGOTIATE A CASH BACK
Stevens says there are great ways to get a bit of cash back in the process of securing your loan too.
“Being conscious of some of the offerings that the banks have, and really leaning on the use of a broker.”
You can then use that cash to cover your financial and legal services costs.
“It also pays to get familiar with what services you require and work out how much that’s going to cost you so that you can try and sort a cashback offer to cover it.”
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