Useful Tips For First Time Real Estate
Your Looking For Your First Piece Of Real Estate.
Where to begin.
First home buyers more than often face financal restriction which limits available properties and the competition of other first home buyers can make it race to succeed.
Purchasing the property is one thing but affording to keep up with it and to maintain it is another.
You may have an idea already of what you are looking for or you may be just wanting to get your foot in the door and be searching in haste.
Either way it realy boils down to what you can afford. What's available and finding the best purchase for your money.
There are lots of useful tips out there and it is well worth a little research to get ahead of the game.
The following are useful tips from my personal experience and hope that these may save you some time and money.
What Can you Afford
Put Pen To Paper - Write a List
The biggest concern when buying a house is the expense. You need to be careful not to over extend what you can afford. I see friends doing this all the time and I often wonder how they will manage when the banks put the interest rates up.
Remember there are other expenses to owning a home including lawyers costs, insurance , rates and maintenance all of which add up and need to be figured into the weekly cost.
If you purchase a house a long way from your job then there is another expense with travel costs putting an added strain on the weekly budget.
You would be lucky to find your dream home with your first Real Estate purchase. It is not common to find a house with everything you are looking for on the first home budget.
Start looking at real estate that you can afford.
Write Out A List Of Costs
- How Much Deposit do you have.
- Use the mortgage calculators to see how much you can borrow.
- Work Out what the repayments would be.
- Write down an estimate of other costs eg rates , Insurance, extra travel etc
Tip- If you live in New Zealand and have opted into the Kiwisaver Scheme you may be able to withdrawal funds and you may also be eligible for a first home subsidy. You may like to read Buying First home with Kiwisaver click here.
By writing out a list you can get an idea of weekly expense and work out if you can easily afford to purchase. You need to leave room for other expenses that may crop up along the way. If you push yourself to the edge you will find yourself under financial pressure all the time and you need to keep in mind that the banks can also put the interest rates up down the track.
Try to purchase your house and still have a little savings in the bank. This really does take the pressure off.
Looking At Real Estate
Great you have sorted the finance out and you know what you can afford. Remember stick to the budget and don't let the Real Estate Agent or anybody else talk you into extending yourself past what you can afford.
Tip Finding a good Real Estate Agent can make all the difference You need to have trust and to feel comfortable with them and they should be looking out for your interests.
You will have an idea of how many rooms you need ,safety for kids and pets , locations etc. But there are other things to consider.
Here Are Some Other Tips To Consider when looking at Real Estate.
- What Needs To Be Done. These days people often renovate before selling so finding a property that needs no immediate maintenance is a big plus.
- Size and State Of The Section. You know clearing and cleaning up a massive section of over grown trees that have roots causing damage to foundations or drains is a very expensive problem.Worth a consideration. Viewing property in the middle of winter is also a good way of seeing whether the section gets boggy or if there may be flood risk.
- The Neighbourhood. Many people advise on this tip so it must mean something Silly as it sounds .But living in a dangerous or noisy neighbourhood can be quite stressful. They say it is better to buy the worst house in the best street than the best house in a bad street. Also a consideration on resale value.
- House Position. How is the property positioned for the benefit of the sun. The main Living areas should face North.
- Condition Make sure you get your own independent builders report and a good one you need to make sure there is no mould, asbestos ,termites, or costly damage and that the roof is ok and there are no leeks. If there has been DIY on the property are there permits where there needs to be.This is really important as the cost of fixing these issues can be huge. Older houses may also have dodgy wiring so that is worth consideration.
- Insurance-This cost has increased in NZ after recent earthquakes and other disasters. We are now advised to insurer our properties for total replacement and depending on different factors with the property eg retaining walls, slope of the land etc This can add more to the insurance cost and a little research into insurance may help you save down the track.
If you can find a good solid low maintenance house at the price you are able to easily afford then you may just have found your perfect first home.
Good Luck and happy house hunting.