Top Tips for Getting Ready to Buy
June has been a steady month for new listings, with a 0.3% increase of properties that have come on the market compared to this time last year.
Buyer interest and activity remain strong, with listings contributing to a well-stocked market. While some buyers are taking their time, others are snapping up properties at attractive prices before winter really sets in and we see less properties come to market. With the government’s 100-day plan and budget announced, it may be some time before this is felt.
So, how can you prepare yourself to buy in today’s market? Vik Singh, Professionals’ in-house Mortgage Broker, offers the following tips to help you prepare for securing your next home.
1. Assess your financial situation:
- Calculate your expenses and determine how much you can allocate towards a mortgage. Remember that once you buy your home, you will not be paying rent. A well-planned personal budget will significantly impact your financial planning.
- Start saving today, regardless of when you plan to buy a house. The more savings you accumulate, the larger your deposit, which can lead to lower interest incurred on your mortgage.
2. Get bank ready:
- Minimise your debt levels. Lenders prefer borrowers with low debt, as it indicates financial responsibility and increases your borrowing capacity.
- Align your expenses with your budget. Limit unnecessary spending and prioritise essential expenses. Only indulge in luxury items if your budget allows.
3. Professional advice:
- Consult a mortgage adviser to simplify the home-buying process. They provide expert guidance, customised solutions, and typically no-obligation advice.
- Engage with local real estate agents for insights into the housing market. Subscribe to their updates on listings and market commentary. Your dream home might be just a conversation away.
4. Pre-approval & stay informed:
- Obtain pre-approval to streamline the home-buying process. It provides a price range for your search and allows you to place conditional offers.
- Check if you can withdraw KiwiSaver funds for your first home or if there are incentives from banks. If you’re considering co-purchasing with a friend or family member, seek legal advice.
5. Prepare to buy:
- Understand the costs associated with home ownership beyond the purchase price and mortgage repayments. These include insurance, council rates, legal fees, bank charges, valuation and inspection fees, maintenance, utilities, and any monthly levies.
- Leverage the knowledge and experience of your mortgage adviser, real estate agent, moving costs, lawyer, and family. Research the location, types of houses, bank requirements, and conditions. Plan for the moving or settlement date, hire a building inspector, and arrange movers if needed.
