How do I find the perfect property?
Buying a home is one of the biggest decisions you have to make in life, and it really is worth putting in the effort to make sure you get it right. Too many people make mistakes in buying homes, which can affect your well-being, be a major hassle - and be very expensive.
Plan for the long term
If you are a first time buyer, you might just want to get your foot on the property ladder and move on in a couple of years. But most people end up living in their homes for many years, and it is vital to factor that in. If you don’t buy a home that is future-proofed, you can end up having to move more frequently, which is incredibly expensive.
- Ensure it is a home you will grow into. People tend to like having more space as they grow older.
- If you are planning kids, or more kids, do you have enough bedrooms, and a garden? Living at the top of a staircase might not matter if you don’t have kids, but could be an impossible barrier with a pram.
- Think about conversions or changes you might make to the property – you don’t have to do them all at once.
Stretch yourself
All other things being equal, owning a home almost always gets steadily more affordable every year you live there.
- Furniture and home improvement costs wither away after the first few years.
- Unless you lose your job or stop working for other reasons, you will most likely enjoy earnings that rise steadily year on year throughout your life.
- The cost of a mortgage does not increase year on year, varying only with interest rates. That means that your mortgage will (usually) get steadily more affordable as a proportion of your income year by year.
- Barring personal setbacks, a property that was difficult to afford when you bought it will almost always be more easily affordable five years later.
Think about the trade-offs
You are unlikely to find a property that has everything you want, so you will have to make trade-offs. But the trade-offs can also be opportunities:
- Being next to a busy road reduces prices, but if the noise doesn’t bother you then it could be an opportunity.
- Many people don’t want to live right next to a school because of the noise from the playground, but if you are always out in school hours it won’t matter.
- People will often spend more for a garden, but if you aren’t that bothered, then it won’t be money well spent.
- If you don’t have a huge budget and want to live centrally, living in a flat above a shop could prove perfect.
Focus on the fundamentals
Make sure you distinguish between what is superficial and what is fundamental. For example:
- You can change the colour scheme easily, but there is nothing you can do about the total floor area in a first floor flat.
- Can you envisage developing the property over the years – is there room for extensions, or is the section big enough for subdivision?
- Ugly features might depress the value, but can be very cheap to remove.
- Changing narrow corridors or awkwardly shaped rooms can be difficult or impossible.
Learn everything you can about the property
Once you have your eye on a property, learn as much as you can about it.
- Ask your real estate agent questions about the property. Ask them to give you some examples of previous sales in the area.
- When you go to view the property, make sure you check out the right things.
- Ensure you do things like checking council records, get a LIM report and find a reputable building inspector who will inspect a property on its merits and explain everything to you
- Ask the neighbours. Knock on their door and tell them you are thinking of buying the house next to them – most people will be delighted to speak to prospective new neighbours. If they aren’t, that tells you something too.
Source: Home Owners Alliance
Written by Pauliene van Strien
Pauliene is a Licensed Real Estate Agent with Mike Pero based on the beautiful Kapiti Coast. Having seen a fair bit of the world after visiting NZ she lost her heart to it and in 2014 took the plunge emigrated her with her husband. You can follow Pauliene on her Facebook page or contact her on pauliene.vanstrien@mikepero.com or 04 902 7800
The information contained in this article is of a general nature and should not be taken as advice. It reflects the opinions of the writer only and does not necessarily reflect the opinions of New Zealand Home Loans.