HELP BUYING A HOUSE IN NZ
Navigating the process of both buying a new house and selling your current one without incurring additional borrowing can be stressful, so this is something we can help you with.
Both exercises require numerous legal documents such as sale and purchase agreements, valuations, sale price negotiations, insurance, building inspections, interpretation of boundary lines, titles, plans and quite a few more…
You can find out how to establish what equity you'll need plus get lots of help you’ll need here, all in one place.
Buying a new house: what can you afford?
First you need to figure out how much you will net from your current house and how much you can afford in mortgage repayments.
How much is your home worth to sell?
- The fastest and no-cost way to find this out is with a free market appraisal by a competent real estate agent. Even better, getting two or three will establish with greater certainty what you can expect to sell for.
- You will need to engage a competent real estate agent who will not only provide an accurate market appraisal, but also work hard for you to get the best sale price, as quickly as possible. Request a shortlist of vetted real estate agents first.
- You will also need to factor into your budget how much real estate marketing, advertising and commission and fees will cost.
- You may want to make a checklist of over-due repairs and maintenance or improvements that will help add value when selling your house. Build these into your costs. Be mindful that there are legal limitations around DIY work. If you’re not sure about what these are, just ask.
The process of buying a house
Without proper due diligence your dream house can turn into a nightmare so make sure you attend to the following. If you need help finding what you need, get in touch, we have it all at our fingertips.
- Establish how much you should offer to pay and build in costs of improvements that will be needed for example insulation, painting or re-roofing etc.
- Work out how much you will need to borrow and whether it's affordable
- Understand the method of sale being used and if it's going to auction, find out how auctions work first
- Make sure you check all details in your sale and purchase agreement carefully, including any amendments
- Is the party you are purchasing from an individual or a company? If a company, it pays to check who the directors are as this will establish any conflicts of interest. This is not common but it does happen.
- Find out if you need to pay tax.
- Check what the annual rates cost (if it has been on Air BnB at all, it will be rated accordingly for a year so check the expiry date)
- Getting insurance cover can be harder since the NZ earthquakes - make sure you can get insurance for the property
- Find a trustworthy and qualified building inspector to ensure the building is weather tight and solid
- Ensure there is a Code of Compliance (COC) for unfinished renovations, decks or extensions and repairs
- Legal Advice is worth its weight in gold - use a property lawyer
Protect yourself by conducting these checks. We have access to the best industry resources at our fingertips so if you need help, get in touch.