Ana Weaver
Buying a piece of land or just an apartment is something that is really exciting but also a complicated thing. Before everything is done you will have to be prepared with information and common knowledge about that field so you can get your best option. As an investment, this is one of the best that you can make because you are solving your housing situation and you finally have your own place. However, this can be a really stressful process because of many reasons. Firstly, you will have to sort out the finances, and secondly the legal stuff that is going on behind.
Property in New Zealand is a really valuable thing to have, but you will have to live there or have roots coming from there so you can buy it. The country is really beautiful, with numerous natural sights that you can visit and maybe plan your retirement there. To make the whole buying process easier for you, we wrote this article with some of the factors that you need to consider before you buy your first home in New Zealand.
Make a plan
Before you do anything, you will have to sit and think about this whole process thoroughly. You don’t want to rush with decisions like these because they can really hurt your finances and that can affect your life in general. Firstly, you should think about your needs, what do you need the property for. If you plan on living there, you should know how much space do you need. If you need more space, you should opt-out for a house, if not, an apartment is a great option. If you have decided on a house, you should make a decision if you want to buy a prebuilt one or you want a new one.
In case you want it just for investment so you can sell it afterward, a better option is to find an old one so you can fix it and then sell it for greater income.
The location is also a thing you should consider because it has to be close to your working place and it needs to have schools and hospitals around just in case. If you are buying the property just for vacation, you should find a place in those locations where you enjoy staying.
Another thing that you will have to know before you go out and look for a house is the way that this buying process works. Basically, the owner of the property lists it up for sale on an advertisement, or they hire an agent to do this job for him. There are a few ways that you can buy it. Firstly, there is a bidding process, where you say how much you are able to offer and if you are the highest one, you get the house. Another way is to directly negotiate with the owner so you can have him tell you how much he needs, and you can negotiate for a price that works best for both of you.
Define your budget
This is also a part of the planning process before going out and looking for the property. You will have to understand how much do you have, and most importantly how much do you plan on spending on this. Keep in mind that you should not spend everything that you have saved because that will disrupt your normal living, and you should always save something on the side just in case.
Depending on whether you are getting the home by yourself, or you are getting it with your significant other, the budget can be adapted for a better option. You should plan things like expenses and things that you might have to fix so don’t blow your whole budget on the property itself.
Apply for a loan
Instead of spending everything that you have, you should go to your bank and ask if you are allowed a loan. If you are, discuss the interest and how much are they willing to give you, so you know if it is enough. You should consider that you should pay around twenty percent of the value yourself, and the remaining could be financed by the banks.
You don’t need to go to the bank that you are using now like your only option, but it is a good place to start. Consider looking for other options because the interest is really important, even a part of a percent will be a major change to the total amount that you will have to pay back.
Another thing you should consider is to get the loan before you go to look at houses and apartments just because you will have the finances on you, and you will be able to bargain and get a better deal for yourself.
Choose the property
This is one of the last steps, and maybe the most interesting ones because you will go to many houses and apartments to see if you like them. You should be really picky because you are not doing this every day and everything has to be great in your taste, but most importantly a space that will function well when you are fully settled.
If you are looking just for land, make sure that you can build on it, and that the location is suitable for you. The building can be a long process so you might have to find a temporary place while everything is finished.
If you plan on building your own home, consider checking out the Kiwi Build Scheme as suggested by mikegreerhomes.co.nz.
Get yourself a lawyer
Since this may be a long process, you will have to hire a lawyer to represent you so you will be able to consult with him for anything that you don’t understand. There are papers that you will need to sign so it is a really good thing to have them so they can confirm that you are okay to put your signature on it.
Get an insurance
After your purchase, you should really consider getting insurance because it is not that expensive on a yearly basis, but it protects your place from any damages that can happen, and with that, it protects your finances.