Practical guide to buying a house?

**MotoGirl** · 5th July 2009, 16:36

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/o...use+checklists

There is other useful information about the process, etc on this page: http://www.westpac.co.nz/olcontent/o...s+and+planners

**bsasuper** · 5th July 2009, 16:40

Originally Posted by Usarka

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** · 5th July 2009, 16:44

PS - Don't knock yourself out looking.

**retro asian** · 5th July 2009, 17:49

Originally Posted by Usarka

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** · 5th July 2009, 21:29

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** · 5th July 2009, 22:43

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** · 5th July 2009, 23:01

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

**Usarka** · 6th July 2009, 07:42

Originally Posted by retro asian

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** · 6th July 2009, 08:20

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** · 6th July 2009, 08:33

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** · 6th July 2009, 08:36

Do they check ID at open homes?

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

**The Stranger:Me** · 6th July 2009, 08:49

Originally Posted by Usarka

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** · 6th July 2009, 11:47

Originally Posted by Usarka

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** · 6th July 2009, 12:35

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** · 6th July 2009, 12:45

Originally Posted by 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.

Bling sent.

The tragedy is Finn is right. People do this. And go on to run investment seminars. And become motivational speakers.

Then go broke or move to Spain.