It goes without saying that buying a house and getting a mortgage is a significant financial decision (and one of the biggest purchases you will make in your life!) and there are so many factors that could go wrong:
- Are you paying too much and will your mortgage repayments cripple you financially?
- What repairs might be required?
- What plans do the local and regional council have for the area and how might that impact on your property?
- What type of title is the property built on and what are the implications for your future plans.
Its really important that you do your homework before committing to purchasing a property.
I came across this article in the Herald about how 87 Tauranga properties have tested positive for P!
I recommend that you get the following checked out before going unconditional on a house offer:
- Obtain a pre-purchase inspection report that covers the quality of the building and drug testing.
- Speak with your lawyer and get them to provide you with advice on the property you intend to purchase.
- Obtain finance confirmation and ensure you can afford the repayments and consider how that will impact on your other financial goals and affordability.
- Get a Land Information Memorandum (LIM) report from the council
- Speak with a property valuation expert about the property to find out what other comparable houses are selling for in the area.
I know that the initial investigation process may cost some money and for first home buyers they may not want to outlay these funds out of their deposit they have scraped together, however, let me assure you that money spent to avoid disaster is definitely money well spent!
Imagine buying a house finally getting a mortgage and sorting the insurances that go with that, and then your kids get sick, or you find out a wall needs replacing, or the house leaks and it needs new roof and cladding.
So... just some things to think about when looking at buying a house!