How to avoid ‘rookie mistakes’
As a first-time buyer Buying your first home can be daunting, but knowing what mistakes to avoid can make things a lot easier.
Buying a property can be stressful – especially if it’s your first time. Knowing you’re about to invest in your future and spend a huge amount of money, coupled with the competitiveness of the housing market, means you can’t let little mistakes creep into your home-buying journey.
One small slip can result in missing out on the property of your dreams or, even worse, end up with a bad case of buyer’s remorse.
But your first step up onto the property ladder can be made a lot smoother with a bit of planning and preparation.
By anticipating and avoiding these six first-time home buyer mistakes, you can set yourself up for success.
Don’t break the bank
The first, crucial step in buying a home is working out exactly what you can – and can’t – afford. Weigh up how much you want to spend versus the type of property you want to buy, and the area you want to buy in.
It can take time, but it’s absolutely worth getting
right. Let your head rule your heart and use Trade Me Property’s handy Property Insights tool to get a feel for prices in your preferred area.
Don’t forget to scheme
There are schemes to help Kiwis buy their first homes, use them if you qualify. They include KiwiSaver (for first home withdrawals or the KiwiSaver First Home Grants scheme) and the First Home Loan Scheme (previously known as the Welcome Home Loan).
Try before you buy
The big things to look out for at open homes include: the condition of the roof; signs of water damage; the piles (foundations under
the property); plumbing and wiring; drainage and whether boundary fences are placed correctly.
Always get a builder’s report – you can do this before you make an offer or as a condition of your offer. As well as asking your builder what issues exist, get an indication of how much these would cost to fix or replace.
Don’t think short-term
When you’re buying your first house, and face steep competition from other buyers in a tight property market, it can be tempting to spend every cent in your budget, but you risk not getting that money back when it’s time to move on and take your next step up the property ladder.
Research is key. Consult the Trade Me Property Price Index to see what the market is doing in your region and make a well-informed decision about how much the property is worth to you.
Get good neighbours
You can change your house but you can’t change your neighbours. There’s a lot to
be said for checking on the neighbours, and taking a walk around the whole area, at all times of day and night, before you put your offer in.
The amenities on offer in your area, like schools, transport links, employment hubs and shops also impact the value of your house, and the convenience of your dayto-day life.
Don’t go it alone
It’s normal to be scared about buying your first house, and the costs of consulting an expert can save you headaches and even more money down the track.
Banks have experts ready and waiting to dish out advice for first (and subsequent) home buyers. From advice on how to save a deposit, what interest rate is best, your credit score, home loan options, or how to get pre-approval – all you have to do is ask.
And with all that in mind, it’s time to start looking. Start your search on Trade Me Property, New Zealand’s number one property site. Happy house hunting!