Think carefully about your long-term goals and how you will get there.
Ask yourself why you are buying. Do you want to buy or build a first home, buy a bigger home or invest in a rental property?
Decide whether buying is right for you. Would renting suit your lifestyle better?
If you’re in a relationship, make sure you discuss your plans together.
Think about where you see yourself or yourselves in 5 to 10 years and beyond.
The sorted.org.nz website has a helpful tool to help you plan your financial goals.
Chances are that you are renting now if you are starting to think about buying your first home. Here are some things to think about to help you decide if buying is right for you right now.
Get your finances together first
People often overlook getting confirmation from their financial lending institution on the exact amount that they can borrow to purchase a home. It is always wise to have your amount confirmed before you go looking to buy your home. You should also keep in mind the additional ongoing expenses that you will need to cover when owning a home such as rates, insurance etc.
It can be disappointing for Home Buyers if the house style they had in mind is not within their confirmed and approved price range. It is important to look around at different house styles, that you can afford, if you have selected a specific suburb to live in. Otherwise, you may need to choose a different suburb but still consider your needs of shopping, transport, schools etc. It helps to make a list of what you need in a home and what would be a bonus.
Often Home Buyers pressure themselves into buying something because they feel that they have looked for so long or that someone else may also be ready to purchase that same house. Buying a home is an important financial decision. If a property doesn't have something that you need, say an extra bedroom for your new baby, then don't buy the property. Look at why it has taken you so long to find something, you may need to reassess your criteria for choosing a home.
Real Estate agents report so often how they have shown a buyer dozens of homes but it is frequently the first home that the buyer saw and really liked that they ended up purchasing. This is because real estate agents are skilled at understanding what it is you are looking for and will do their best to select for you those homes that most closely match your needs. Often home buyers think that they must see dozens of homes to be sure, however if the first home you see suits you and you like it, then buy it, as you may miss out if you choose to look at multiple offers before deciding.
Home Buyers often try to 'go it alone' and not ask real estate agents for their help. But remember, agents are there to help you find what you're looking for, they do not want to sell you something that you won't be happy with because unhappy customers are bad for business. Ask agents questions to get as much information as you need to buy a home.
Overlooking potential future problems can be an issue for first time buyers who are not familiar with building construction. It is often a good idea to get a building inspection completed by a registered and qualified tradesperson, particularly if you are in doubt about any structural elements.
Home Buyers often feel that they need 'approval' from their parents or friends before making the final decision. But it is your opinion that matters most. You will be the one living there.
Home Buyers often judge a home by the furnishings and style that are in place. You should imagine your own furnishings in place to clearly picture and highlight the benefits of the good floor plan of the home.
Some Buyers may avoid homes that are for auction because they are unfamiliar with the process. Ask your agent to explain the auction system to you, it is a very controlled and fair process. Try going to several auctions at which you are not going to bid and be an observer. When you decide to attend an auction to bid for a house, then ask the agent to assist you. They will help you to feel comfortable with the process.
Getting attached to your dream home can be a cause of distress/frustration. You see it, you've got to have it, and then it's sold to someone else with more money. It is possible that your offer may not be accepted or that someone else may bid higher than you at the auction. The good news is there is always another home and while you may not believe it at the time, there really is another home that will suit your needs, and probably become your dream home.