Practical guide to buying a house?

[Usarka]

Not sure if I can be arsed, but if was to be what's the best way to go about it?

I'm not talking about the cliched advice like "do your research", and "get an inspection done" or "get a perm" bollox. What I want to know is where to start.....

Most properties these days are listed as auctions, or negotiable etc without any price. How the f&#$ do you do any research when you don't know what stuff costs?

[YellowDog]

1. List your requirements.
2. Work out your max budget.
3. If cost of requirements = < Budget then buy house.
4. If cost of requirements = > Budget then look at what you can afford and compromise.

My general observation of the NZ housing market is that a shit house costs almost the same as a good one.

Best advice, get a good one and avoid those leaky buggers.

BTW: This is one of the bigest decsions you will make in your life and if you can't be ased, just don't bother.

[Usarka]

1. List your requirements.
2. Work out your max budget.
3. If cost of requirements = < Budget then buy house.
4. If cost of requirements = > Budget then look at what you can afford and compromise.

My general observation of the NZ housing market is that a shit house costs almost the same as a good one.

Best advice, get a good one and avoid those leaky buggers..

Thanks but not what I'm asking.

How do I find properties that meet my requirements and budget? I picked up the property press yesterday and listed prices are rarer than a hookers pubes.

[YellowDog]

Fair comment about the pubes.

If they can't be bothered to give a price, then give them a wide berth.

However if you are really interested, look on QV.co.nz to see what the GV is. Depending where the property is and when the GV was done, you can get an idea as to what it is worth.

I'm on the Auckland North Shore and GV less 10% is about the going rate.

Why don't you try www.realestate.co.nz . They have all the properties from all the agents on there.

BTW: IMO - It's a very good time to buy.

[pzkpfw]

Thanks but not what I'm asking.

How do I find properties that meet my requirements and budget? I picked up the property press yesterday and listed prices are rarer than a hookers pubes.

It's a real pain in the neck.

What I did was use whatever details were available to look up GV (RV whatever) on the council website. (In Wellington we get that).

Eventually you learn what a house "should be worth". (Adjusting GV to current market trend).

Then when you see a house that's realistically in your price range (by your estimate) you go make an offer. You make it too low, you go through all that arsing about with offer-counter-offer and eventually buy it or not.

It's a hassle, but I think what it comes down to is [experience] + [the few details available] + [the few house with advertised prices] = [ability to make own estimate of value].

[bsasuper]

You can get the government valuation (GV), go into estate agents and ask what the houses have been selling for in an area.Go to your bank and workout the max you can borrow, buy private where possible.What you pay is up to you, if you dont to the research, you'll get done.

[Usarka]

It's a hassle, but I think what it comes down to is [experience] + [the few details available] + [the few house with advertised prices] = [ability to make own estimate of value].

I'm fucked then!

Might pop down to the bank this week and see how much they can give me.

Cheers for the answers all....

[kave]

I recently bought a house. This is how I went about it.


* Decide that buying a house is definitely the best option for you.

* Work out what you are comfortable spending.

* Write out a list of what your house must have.

* Write out a list of things that you would really like in a house, but could do without.

* Work out what areas you are looking to buy in.

* Spend three weeks attending open-homes with no intention to buy (you will not get a true feel for the market without going to open homes, almost all adds are misleading).

* During that three weeks you will make a lot of relationships with real estate agents, make sure that they understand exactly what you are looking for, they will give you suggestions and will also know the value of houses with no advertised price. A good real estate agent is a huge help.

* Personally I made the decision to steer clear of auctions and told the real estate agents that I was not interested in any houses that were being auctioned.

* Once you find a house that you like, get it thoroughly checked.


Thats how I went about it, and I am really happy with the outcome. The real key is finding a good real estate agent. There will be agents you see regularly, and often if you go to an open home at 2pm then one at 4pm you will end up dealing with the same agent. They really want to sell the houses on their books, and if you develop a good relationship with them and are upfront about what you want and almost honest about what you will pay (best to lie and say you are looking at spending about 20k less than you actually are) they will often do a lot of the legwork for you. If you go to a house and don't like it then tell the agent why, so they don't suggest more houses with the same faults.

[bsasuper]

Ive found that estate agents suck, sure there nice to you but remember they make a big fat commission on a sale.I just brought a house for less than GV, and a wopping $100 grand less than what the owners were asking, It was a private sale, only had to get a valuation to please the bank

[Usarka]

Ive found that estate agents suck, sure there nice to you but remember they make a big fat commission on a sale.I just brought a house for less than GV, and a wopping $100 grand less than what the owners were asking, It was a private sale, only had to get a valuation to please the bank

Where do private sellers advertise? Or did you do a sneaky approach-the-owners-when-the-agents-not-looking ruse...

[Madness]

Where do private sellers advertise? Or did you do a sneaky approach-the-owners-when-the-agents-not-looking ruse...

Tardme. Use Private Sale as a keyword for your search, auw.

Edit:/ Watch out for the rougher parts of Mianus, I've heard bad things.....

[Winston001]

I recently bought a house. This is how I went about it.


* Decide that buying a house is definitely the best option for you.

* Work out what you are comfortable spending.

* Write out a list of what your house must have.

* Write out a list of things that you would really like in a house, but could do without.

* Work out what areas you are looking to buy in.

* Spend three weeks attending open-homes with no intention to buy (you will not get a true feel for the market without going to open homes, almost all adds are misleading).

* During that three weeks you will make a lot of relationships with real estate agents, make sure that they understand exactly what you are looking for, they will give you suggestions and will also know the value of houses with no advertised price. A good real estate agent is a huge help.

* Personally I made the decision to steer clear of auctions and told the real estate agents that I was not interested in any houses that were being auctioned.

* Once you find a house that you like, get it thoroughly checked.


Thats how I went about it, and I am really happy with the outcome. The real key is finding a good real estate agent. There will be agents you see regularly, and often if you go to an open home at 2pm then one at 4pm you will end up dealing with the same agent. They really want to sell the houses on their books, and if you develop a good relationship with them and are upfront about what you want and almost honest about what you will pay (best to lie and say you are looking at spending about 20k less than you actually are) they will often do a lot of the legwork for you. If you go to a house and don't like it then tell the agent why, so they don't suggest more houses with the same faults.

Good sound advice. Print it out.

[James Deuce]

It doesn't matter how many "relationships" you form with Real Estate agents, they will never, ever, take you to see houses that fit your criteria or budget.

Always ask to see specific houses. If the agent refuses, you know they are about to waste your time. Our only specs were a garage and 3ish bedrooms.

One agent showed us 5 houses in a row with no garage. Never get mad with Real Estate agents. They can't help being retarded and you shouldn't get mad with people who really can't help being the way they are.

[Winston001]

Most properties these days are listed as auctions, or negotiable etc without any price. How the f&#$ do you do any research when you don't know what stuff costs?

Yeah understand your frustration. No price is stupid but its because we are in a recession.

Here's the way it works: agents are desperate to get listings. At the same time they know prices have dropped. So they dare not tell the seller the price is too high in case the seller dumps them and goes elsewhere.

Instead the agent suggests a "price band" or some other no-price method eg. Price on Application = POA.

Or, if they can talk the seller into it, an auction. These are great for real estate agencies. Heaps of advertising, usually paid by the seller. Lots of agency profile. The house is incidental. In the meantime the seller gets all excited about the big day.

When no bids occur at auction, the seller is gutted (seen it happen) and realises their dream of a high price isn't going to happen. The agent avoids responsibility by saying "the market is speaking". The result is the seller agrees to a more realistic price and the agent is happy.

So no-price listings are normally unrealistic asking prices. Auctions much the same except now and then unique properties do come up eg. converted church, semi-commercial land.

[Big Dave]

We bought the first place we looked at. Been here 8 years.

We knew how much we wanted to spend, areas we wanted to live and accommodation requirements.

As long as it structurally sound and ticks those boxes don't make it too hard for yourself. Paint and a bit of DIY fixes anything else.

You make due diligence with your Solicitor - making sure it's not in the path of the proposed freeway, zonings etc.

[MotoGirl]

Some of the information on Westpac's site is useful, such as the checklists for deciding what you want in a house. It gives you loads of options and lets you pick whether each one is essential, nice to have, or unwanted. I got given a hardcopy of this information and it came in really useful when we bought our first house.

Check them out here: http://www.westpac.co.nz/olcontent/olcontent.nsf/Content/Buying+a+house+checklists

There is other useful information about the process, etc on this page: http://www.westpac.co.nz/olcontent/olcontent.nsf/Content/Free+house+buying+tips+guides+and+planners

[bsasuper]

Where do private sellers advertise? Or did you do a sneaky approach-the-owners-when-the-agents-not-looking ruse...

Newspapers,trademe, go for a drive and look for "for sale house, private sale" signs.

[Big Dave]

PS - Don't knock yourself out looking.

[retro asian]

Thanks but not what I'm asking.

How do I find properties that meet my requirements and budget? I picked up the property press yesterday and listed prices are rarer than a hookers pubes.


Right now is a tricky time to determine costs. Buyers want cheap deals, Sellers don't want to sell under value (unless they are desperate).

Because of all the media hype about lower prices, there seems to be a price gap created between demand and supply. So there's not many houses on the market at this time...

I don't have it anymore, but there was a good book at whitcoulls written by an ex-Harcourts Salesperson. It gives you a good insight into how the game works, cause you HAVE to play the game to get a good deal...

[NinjaNanna]

Council websites and QV are your friend.

Google Street view can save you alot of petrol.

A buyers agent is great as others have said they do the leg work for you.

Don't forget to budget an extra $350 per month to cover rates, insurance and long term maintance fund (eventually you will need to paint better to prepare for it now).

Seriously consider income protection insurance - if you get hurt or sick you don't want to loose your job and your house to.

Mortgage insurance only covers the bank - it doesn't benefit you in any way what so ever (even though you have to pay for it - robbing bastards)

Don't forget to take into consideration what you want from your future, if you want kids and your partner to stay home for a few years to look after them, that'll greatly affect what you can afford in repayments. Likewise if you don't want to be a mortgage slave for the next 20yrs consider settling for less house.

It may have changed now with the credit crunch and all that - but don't trust the banks to decide how much you can borrow. The amount of money they offered me was obscene and there was no way I could have made the repayments without major lifestyle adjustment.

Don't trust interest rates to stay low!!!! They are pretty much at their lowest now (give or take a a basis point or two) and there is only one way for them to go.

Think about future tax implications if there is any possibility that you'll use it as a rental property in the future.

If at all possible only borrow against 1 income not both yours and your partners

Renovations even dyi ones always cost more than you expect.

Be prepared for the pressure that agents will apply to close the deal once you've decided to make an offer (even your friendly buyers agent) stick to your own game plan and don't let them take control

[Shadows]

Go on the local agents' websites and do searches in the area you want in the price range you're looking at. Trademe isn't bad either.

Pretty soon you'll have a good feel for the value of the market.

Then find an agent. Try and find somebody who has purchased recently that can recommend one to you. Tell the agent exactly what you're looking for, for about how much, and go from there. He should take you shopping. If he doesn't, find another agent. A good one will even arrange for you to see properties listed by other agencies. Once again, if he doesn't, find another one. Best to be straight up in regards what you're prepared to pay - both higher and lower limits - then he can do his job properly. The negotiating can happen later.

[Winston001]

Hope you are reading this thread for the other side of the equation - the frustrations of selling. http://www.kiwibiker.co.nz/forums/showthread.php?t=102734

[Usarka]

Right now is a tricky time to determine costs. Buyers want cheap deals, Sellers don't want to sell under value (unless they are desperate).

Because of all the media hype about lower prices, there seems to be a price gap created between demand and supply. So there's not many houses on the market at this time...


Which is the main factor putting me off... All these people who bought for capital gain and are hanging on in the belief they should get what they damn well deserve because they read some self esteem book and watched property climbers on tv and like to finger their pet chihuahua while driving to the mall.....

Most of the negative reports on the "housing market" are from economists. Most of the rosey positive ones are from the real estate profession or property investors.

Hmmmmmm......

[crazyhorse]

Pays to do your homework - and it requires time.

By this I mean, you need to watch the market, do open homes, work out what you think a house is worth, and value what it sold for - because the buyers set the market - and they are the ones who determine what a house is worth. You can get statistics from Real Estate agents.

Check your local paper for private ads. Also www.realestate.co.nz and yes, trademe.

You need to work out your maximum spend, but it will take time to work out which area you want to buy in and whether you can afford it. But if you watch the market then you will know which price range a house falls into. Agents will always give you a rough idea anyway - or look at the RV. It is only a guideline though.

Good luck

[PrincessBandit]

A house is only worth what you're prepared to pay for it. There has been some good advice already given in this thread, and I can only affirm that the scale of a purchase like this means that you have to give an arse about researching (unless you win lotto and $ isn't an issue...)

The idea of open homes is good - you can just rock on up and have a look, but do be aware that you are supposed to put your name on the agents "who has been through the house" list - security and all that for the home owner as well as a potential client list for the agent.

Once you find houses that you are interested in you might like to drive/ride through the street/area at random times of the day/evening/week and weekend to get a feel for the neighbourhood. That is assuming you don't know the area you're interested in potentially living in.

And it also pays to talk to the bank early on so that you have a better idea of how much you can spend. If you are a cash buyer (basically read, don't have a house to sell before purchasing) then you can usually negotiate a better deal.

[Usarka]

Do they check ID at open homes?

Or can I put down a name like Hugh Jarss.....?

[The Stranger]

Which is the main factor putting me off... All these people who bought for capital gain and are hanging on in the belief they should get what they damn well deserve because they read some self esteem book and watched property climbers on tv and like to finger their pet chihuahua while driving to the mall.....

Most of the negative reports on the "housing market" are from economists. Most of the rosey positive ones are from the real estate profession or property investors.

Hmmmmmm......

Ah procrastination. Much easier than actually making a decision.

Why are you buying the house?
If it's for quick turn over and/or profit due to capital gain (which is apparently abhorrent) then timing is of some import.
However, if it's for you to live in for a number of years, just buy the fooken thing and stop pissing around. Whats a few thousand dollars either way? Nothing!
We paid too much for our place 12 years ago. So what? Even with a recession we are well up on what we paid, so what if it is 70 percent up instead of 72.
That said, you don't actually make anything on a house purchased for your personal use anyway.

[Swoop]

Where do private sellers advertise? Or did you do a sneaky approach-the-owners-when-the-agents-not-looking ruse...
You can look at Green Door, as they are for private sales. Parents went through that process recently and only had to get solicitors to do the paperwork. No agent's fees.

If you try a sneaky "contact the vendor on the side" approach, there is probably an agreement between the seller and the agent that makes this a no-no.


Also. I am not a fan of houses built from 1994 onwards. Untreated timber can be present in some of them, and the James Hardie crap that covers up a lot of problems...
Get the place checked... thoroughly.

[Finn]

You guys have got it all wrong. Here's what you do...

1. Find a house, any house and get a dodgy valuer to give it a value 10 - 20% more than it's worth

2. Negotiate hard and buy the house at a good price. Make sure loan is interest only.

3. Claim back the GST on the purchase

4. Rent it out.

5. Use the over valued equity for the next house.

6. Repeat steps 1 - 5 as many times as you can.

7. Buy a Ferrari.

The worse than can happen is the market turns on you and the banks call the mortgages. Because you've set up a complex set of trusts and a good accountant, you'll walk away with some assets and cash. If you're unlucky, you may be bankrupted. No problem, just set up a dodgy mate as an executor of the trust and repeat steps 1 - 5 again.

[Winston001]

You guys have got it all wrong. Here's what you do...

1. Find a house, any house and get a dodgy valuer to give it a value 10 - 20% more than it's worth

2. Negotiate hard and buy the house at a good price. Make sure loan is interest only.

3. Claim back the GST on the purchase

4. Rent it out.

5. Use the over valued equity for the next house.

6. Repeat steps 1 - 5 as many times as you can.

7. Buy a Ferrari.

The worse than can happen is the market turns on you and the banks call the mortgages. Because you've set up a complex set of trusts and a good accountant, you'll walk away with some assets and cash. If you're unlucky, you may be bankrupted. No problem, just set up a dodgy mate as an executor of the trust and repeat steps 1 - 5 again.

Bling sent. :woohoo:


The tragedy is Finn is right. People do this. And go on to run investment seminars. And become motivational speakers. :gob: Then go broke or move to Spain.

[Big Dave]

Biscuits - You iz not a stupid person. Clumsy maybe.
Just go and find a bakery you like, and can afford, and buy the fuckin' thing.

[skidMark]

Get a perm first, the rest will figure itself out.

[HenryDorsetCase]

Where do private sellers advertise? Or did you do a sneaky approach-the-owners-when-the-agents-not-looking ruse...

any vendor who has signed with an agent and tries to back-door them like that will get hammered. As a buyer its not your problem.

One thing I need to mention here. For years there has been a "Standard form" for real estate sales. It was jointly developed by the Law Society and the Real Estate institute, and most agents could understand it some of the time, and all lawyers could understand it all the time.

The Real Estate Institute has decided to say "Fuck you" to the Law Society form and develop its own. Very limited input from lawyers, and only a few lawyers have seen it. The problem is that we go from a situation where all that "Fine print" (technically the General Terms of Sale, clauses 1-14) provide a known, court tested, and reasonable set of expectations regarding who will do what, vendor warranties regarding title, boundaries, chattels, who does what if settlement is late, etc etc, to one where potentially none of that is set out. You would NOT want to be the test case as to what clause X in the new agreement actually meant.

My advice. If the contract you are asked to sign is NOT headed "Agreement for Sale and Purchase of Real Estate Eighth Edition (2) then a purchaser would be very wise to include a clause along the lines of "This agreement is subject to approval as to form AND CONTENT by the Purchaser's solicitor, within 10 working days of the date of this Agreement." (make it the same number of days as your title, LIM, finance and building inspection clauses. < Oh, and yes I totally recommend you insert those clauses).

Just a heads up. No charge. :)

[HenryDorsetCase]

you guys have got it all wrong. Here's what you do...

1. Find a house, any house and get a dodgy valuer to give it a value 10 - 20% more than it's worth

2. Negotiate hard and buy the house at a good price. Make sure loan is interest only.

3. Claim back the gst on the purchase

4. Rent it out.

5. Use the over valued equity for the next house.

6. Repeat steps 1 - 5 as many times as you can.

7. Buy a ferrari.

The worse than can happen is the market turns on you and the banks call the mortgages. Because you've set up a complex set of trusts and a good accountant, you'll walk away with some assets and cash. If you're unlucky, you may be bankrupted. No problem, just set up a dodgy mate as an executor of the trust and repeat steps 1 - 5 again.

bahahahahahahaaha

so so true.


and YOU WILL NEVER GET A CHEAPER FERRARI THAN NOW. Just saying.

theres even a DB7 Aston on tardme for $60 large!!! cheap as chips au!

[skidMark]

bahahahahahahaaha

so so true.


and YOU WILL NEVER GET A CHEAPER FERRARI THAN NOW. Just saying.

theres even a DB7 Aston on tardme for $60 large!!! cheap as chips au!


Yep 93 ferrari at the dealer in newmarket 99k...

WANT

[Winston001]

the real estate institute has decided to say "fuck you" to the law society form....

witches witches burn them burn them all

[Finn]

and YOU WILL NEVER GET A CHEAPER FERRARI THAN NOW. Just saying.

theres even a DB7 Aston on tardme for $60 large!!! cheap as chips au!

And it'll cost you another $60k per year to keep the shitter going. Besides, its a 3.2L 6 cylinder Aston. Should never have been manufactured.


Yep 93 ferrari at the dealer in newmarket 99k...

WANT

There are many other cars that would be faster and more fun for $99k than an old shitter like this. Unfortunately, the only good Ferrari is a new one. Then they are VERY good.

[retro asian]

Which is the main factor putting me off... All these people who bought for capital gain and are hanging on in the belief they should get what they damn well deserve because they read some self esteem book and watched property climbers on tv and like to finger their pet chihuahua while driving to the mall.....

Most of the negative reports on the "housing market" are from economists. Most of the rosey positive ones are from the real estate profession or property investors.

Hmmmmmm......

Hahaha

Auckland needs more houses:
http://www.stuff.co.nz/business/personal-finance/2568773/Auckland-needs-more-houses

[Big Dave]

And it'll cost you another $60k per year to keep the shitter going.

That only makes him $119,990 short.

[HenryDorsetCase]

That only makes him $119,990 short.
60 +60 +119990 = $239990 = AM Vanquish?

I like the V8 Vantage: White with black wheels and interior please. :)

and I am short so the "high seat" option gets a tick. Oh, and the "willy extender" as well. If I'm talking the talk, I better be able to walk the walk.... right?

[Big Dave]

60 +60 +119990 = $239990 = AM Vanquish?

I like the V8 Vantage: White with black wheels and interior please. :)

and I am short so the "high seat" option gets a tick. Oh, and the "willy extender" as well. If I'm talking the talk, I better be able to walk the walk.... right?

I meant Skiddy. Was 60 short plus the...whatever.

I can't get into any Aston Martin...actually that's not right - I can get in OK - getting out again is pure Keystone cops.