Buying your first home can be daunting at first, but it is an exciting time.
There is a lot to learn if you are new to the property market, our advice is to take your time, do your homework, and talk to people who can help.
We’ve got some more advice below, we hope you find it useful.

1. Money Matters

To purchase your new home you need to know two important things before you even start to look seriously.
First up, how much can you borrow to make the purchase, and most importantly second, how much can I afford to repay.

Banks and Building societies are all competing for your business, so it really pays to shop around.
You can generally borrow three to three and a half your annual salary, or if you are buying with your partner, two and a half times your combined annual salaries.
It does vary depending on your financial situation, and you may find that various mortgage providers will offer you more or less depending on the interest rate
and the length of the mortgage term.
Most mortgage providers will want a deposit, in general the more you can make as a deposit on the property you wish to purchase, the more favourably the mortgage provider will look at your application.
There are some great resources on the web to help you, we recommend a visit to Sorted – http://www.sorted.org.nz as a great place to get some independant, and very sensible advice.

It also pays to look at the different kinds of mortgages available, and to get some understanding of how these effect the term, repayments and interest you pay.

As a new home owner, your mortgage repayments will become your biggest financial responsibility – if you can’t make your repayments you risk loosing your home.
It is therefore absolutely essential that you work out what you can realistically afford to pay. Again, the independent advice at Sorted.org.nz (see http://www.sorted.org.nz/home/sorted-sections/mortgages) is an invaluable place to start.

Once you know how much you can afford, and have a good idea of the kind of mortgage you are looking for, finding that new home will become a lot easier.
You now have some clear parameters to focus your house hunting!

2. Getting Legal

Purchasing a home requires the creation and exchange of legal documents. You can do some of the preparation yourself, but in all cases you will require the services of
a solicitor to undertake the final preparation and lodgement of these documents for you. Your solicitor will liaise with the Vendors solicitor, your mortgage provider and,
the real estate agents and Land Information New Zealand ( or LINZ. A government department that exists to maintain and regulate Crown and private property rights in New Zealand).
If you don’t already have a solicitor, don’t just walk into the nearest office. Get some recommendations from friends, family or co-workers.
You really want a solicitor you can rely on, one that is experienced in ‘conveyancing’ (the legal process of buying and selling property), and one who provides a quality service.
Don’t be afraid to inquire about their fees before you engage them. You need to know how much their services will cost – and there can be quite a difference between different practices.

3. Finding that new home

Do two things – get online, and get out and about.
Getting online and searching for properties within your budget and within the locale you are interested in, is easier than ever.
Getting out and about is important to help you get a real feel for the state of the market, and to get experienced in seeing past things that may turn you off a property to start with,
like those flowery carpets you just can’t buy anymore, or those drapes that are so, well, seventies!! You also need to become sharp at spotting potential pitfalls, like old wiring,
rotting wood, or poor room layout. Photo’s on websites will of course do their best to hide these things, so you need to get to Open Homes, or have the real estate agent give you
a viewing of property.
The hard part comes when you have looked at all that is available and you are still looking. The trick is to try and get ahead of the game. Let real estate agents know what you are looking for, be as specific as you can, and ask them to let you know of new listings.
If you would rather not be hassled by Real estate agents – and we know that some of them can do a lot of hassling – sign up for property alerts, or new listing alerts just like our property informer. It will help you get to the head of the line in looking for properties the moment they come on the market.

Ask questions! You need to know as much as you can about a potential new home, the more information you have, the easier it will be to decide if this is the one. Important questions to ask include – How long has the property been on the market? Why is it for sale? How much interest has their been? You also want to be sure that the area is somewhere you really want to live. Make sure you are informed about any future developments that are planned, are schools important to you, or other amenities.

You may have heard the phrase ‘Location, Location, Location‘ – the three rules of selling a property. We like to say that the three rules of buying a property are ‘Research, research, research‘.

This is a big decision, and the more information you have the easier it will be.

When you have found a property you think is the one, that is the time to get your solicitor involved. They can help you get an offer document together, and begin liason and negotiation with the vendors.
You will also need to think about getting a building inspection from someone qualified, and a valuation – in fact, your mortgage may depend on having a valuation.

Again, before you engage someone to do this, get informed first. Talk to friends, family or co-workers, get their advice. Also talk to the real estate agent and your solicitor.
They are in the property business, and they will know quite clear opinions on valuers and other professionals.

4. Dealing with Real Estate Agents

We are not all the same. The team here at Heyward Realty pride ourselves on being a lot more than you would expect. While we are here to sell properties, and yes, of course we want to get the best price for our clients – we are here to help prospective purchasers too!

If we can’t help you, then we can’t help our vendors. We look at it this way… if we can help you buy your first home, then we really hope, that when the time comes, you will help us sell it for you. A very large number of our customers come to us, because they bought from us, and they know that we work hard for our customers.

Even if you don’t see a property for sale on our current listings, let us know what you are looking for, and we will keep an eye out, and you will see first hand that we are actually, great people to deal with.