If you are looking for information on how to buy a house in New Zealand then you are in the right place. As you most likely know, finding the perfect property and then moving in can be quite a cumbersome experience. Even if you have done it before it is still incredibly challenging. You most likely have tons of people telling you exactly what to do. However, on this page I am going to against the grain. I am going to give you a couple of tips on what you shouldn’t do when that question, “How to buy a house in New Zealand” pops into mind.
If you know you are going to move again in the near future, consider putting off your house purchase unless you are looking to rent it out to someone else. Sure, it may be tempting to climb up the housing ladder and stop renting, but it isn’t ideal. You see, it will cost a lot of money to buy a house. You will then need to shell out even more when you decide to up sticks and move later on. Plus, there are the closing costs, moving costs and fees associated with your purchase to think about. If you aren’t going to be living in the house long, doesn’t make much sense shelling out these fees right?
No matter how tempting it is, do not go over your budget. You have set that budget for a reason. It is to ensure that you actually have enough money left over to live. When people ask, ‘How to buy a house in New Zealand’, it is often suggested that they get pre-approved for a mortgage first. When you are searching for a house, look for one that costs a little less than what you can afford at this current point in time. You never know when you may lose your job and struggle to make ends meet. You don’t want to lose your house too do you? What I’m really saying here is please consider your future position as well when making a buying decision.
Don’t ignore all of those extra costs that are often associated with properties. You know the ones. The maintenance costs, your utility bills, insurance, taxes etc. If you rent a house then these fees are most likely included in your rent and thus they are easy to forget about. When you own a home though they can quickly add up. This needs to be factored into your budget.
Try to put down as much of a deposit as you can. Most banks will ask you to put down at least a 20% down payment on the home. If you have to save up for it then you are going to plan ahead and do so. This really does depend on the circumstances in which you are buying the home though. If you are an investor for example, you would want to put down as little of a deposit as possible to maximise your ROE.
Don’t shake on it. Get it in writing! Everything that you agree from the price of the house to actual furniture that you get included with the property should be written down. That way you know just what is expected of the property and you have some sort of back up should something actually go wrong with it.
Do not fail to get a building inspector in. You will be surprised at how much they are able to pick up that you may have previously missed! Yes, they may cost money but trust me when I say that they are worth their weight in gold.
And there you have it, a few neat tips on how to buy a house in New Zealand.
