Home buyers seminar (part 1 – doing your home work)

After the successful home buyers seminar this Tuesday I was asked to share my presentation with a greater audience.

Many buyers approach the home buying process, probably the biggest financial transaction in their lives, unprepared. They then deal with real estate agents, bankers, mortgage brokers, lawyers and others who are accustomed to property deals and in may times end up confused and frustrated.

The solution?

First, create a strategy that’s right for YOU!

Ask yourself these questions:

  1. What am I trying to achieve? For some it is being in the right school zones, for others it’s about living stumbling distance for the local bar.
  2. How long will I live in this house? Long term solution or just a step onto the property ladder.
  3. Is my lifestyle going to change? There is no joy in buying a house and committing to a mortgage if you can’t enjoy overseas holidays and going out to a restaurant like you were used to.
  4. Do I still want to travel or work overseas? Than buy a house that would be easy to rent out and maintain.
  5. what type of ownership would suit my requirements, straight ownership, Ltd company or a trust? Speak to lawyer or accountant on how to best protect your assets.
  6. Do I want to buy an investment in 2,3,5 years? Than buy a property that would allow you to create or generate enough equity for future leverage.

Second, create your own team of experts, people who can advise you on the many aspects of home buying.

These experts may include a solicitor or legal executive, a building inspector, a finance / banking adviser, a buyer’s advocate an accountant and a town planner.

Talk to them about what you should look out for when buying, how to structure your purchase, how to structure your finance and what you can or can’t do with your future house or land.

Third, become your own expert. Choose a suburb, an area or a building style and immerse yourself into it.

Study its the history, recent sales, common titles, average prices, better streets etc.

Connect with the local agents – they are a source of valuable information.

Drive and walk the streets and talk to the residents.

They will be flattered and proud you have chosen to buy in their neighborhood and tell you everything you’d want to know including properties that may be coming on the market soon.

Once you know the area and a property opportunity presents itself, you will be well prepared to snap it up quickly for the right price.

August 05 2010 | Agent advice and Events and Property Investment | 1 Comment »

How to buy a home in New Zealand: House hunting checklist

House hunting is one of the most exciting stages in the home buying process – you get to visit houses for sale to see how they stack up against your needs and wants.

It’s also a part of the process where many first-time buyers make mistakes. Some people get swept up in the excitement, and overlook the flaws of a property. This is where a house hunting checklist comes into the picture. If you create a checklist of the things you need and want in a home, you’ll have a much easier time with the house hunting process.

Your Checklist – Needs vs Wants

The first thing you should do is create a checklist of the things you truly need in your home, and a separate list of things you would like to have. An easy way to do this is to draw a line down a piece of paper, dividing it into two columns. Label the left side “Need” and the right side “Want.”

Start with the things you need – such as the number of bedrooms, the location, or the size of the section. This will help you narrow your search down, allowing you to weed out houses that don’t meet your needs. If you use a real estate agent to help with the house hunt, this checklist will be a useful tool for them as well.

Other Things to Look For
So what else should you look for during the house hunting process, aside from the basic criteria? Look for signs of disrepair, mould, structural damage, standing water, view obstructions – anything that raises a ‘red flag’ in your mind. Take a notepad with you when house hunting and jot down faults or concerns as you come across them. A Land Information Memorandum (LIM) report can also identify issues or potential problems in and around a property.

Just keep in mind that you can have a more thorough home inspection after you make an offer on a particular house. You can make your offer contingent upon a successful home inspection. That way, you can back out of the deal if the home inspection finds faults or problems which are unacceptable to you.

for relevant checklists check out this post.

July 30 2010 | Agent advice | No Comments »