Our advice for first home buyers getting started
The first step up the property ladder is often the hardest. If you’re about to start preparing to buy your first home make the process easier by checking out our simple tips.
Saving a deposit
It’s best to save a deposit equal to 20 per cent of the property’s value. This makes it easier to secure finance and allows you to avoid the high interest rates associated with low deposit loans.
If you buy a brand new property off the plans you may be able to secure it with a 5 per cent deposit with the rest payable when the building is complete.
Sorting your finance
Once you have a deposit saved you need to find out whether or not lenders will help you out with a loan. Speak to a local mortgage broker and get finance pre-approval before you start your property hunt.
Pre-approval is an indication that your bank will most likely lend you capital to buy property up to a predetermined price limit.
Gathering a team of experts
It’s almost impossible to buy a first home on your own. Gather a team of experts around you to help, including a:
- Mortgage broker.
- Building inspector.
- Estate agent.
- Insurance broker.
If you need a hand finding the right pros to help – Williams Corp have a network of professionals we trust and recommend in both Christchurch and Auckland.
Covering extra costs
A home costs more than the purchase price – you’ll also have to cover conveyancing fees, building inspection costs, insurance and moving costs.
It’s a good idea to have extra cash put aside to cover these expenses.
Before you buy you need to make sure your income is enough to cover ongoing mortgage repayments and property costs.
As a rule of thumb, mortgage repayments should be less than 30 per cent of your total income with room left to cover things like insurance, maintenance and repairs. These extra costs may be lower if you buy a brand new property.
Picking a property
Once you’ve sorted all of the above it’s time to start thinking about picking a property!
Consider where you want to live, what your commute will look like and what you value most. Look for areas where you can walk to cafes, transport links and other amenities and prioritise build quality, finish and design.
When buying off the plans make sure you only do so from a reputable developer with a long track record of successfully delivering high quality projects as promised.
If you still need a helping hand with any stage of the process – feel free get in touch with the friendly team of property experts at Williams Corporation.
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