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Thread: House buying

  1. #31
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    I've recently bought a house in kihikihi. Don't believe everything anyone tells you. My lawyer almost cost me the house a couple of times.

    The mortgage broker has been amazing (Lime group if anyone is looking I'd strongly recommend them).

    It's not actually expensive to buy a house. I've had kiwisaver since the beginning. I've only contributed $6000. I bought (well loaned the money to buy) a brand new Ute at the start of the year. Then saved about $13,000 to pay a chunk of the loan back but decided to buy a house instead. Literally 4 months savings to buy a house. Our mortgage is $8 more than our rent was. Our insurance has gone up. But not stupidly so.

    The valuation could fuck you over too. The valuation came back $8000 less than purchase price, so our 12% deposit dropped below 10% and we had to save the entirety of our next pays to get back over 10%. The valuation was arranged by the bank, they didn't factor into the valuation the work that hadn't been done which was in the purchase agreement (New fence, extending the section 4m back, new heat pump, repairs picked up in the building report). The valuation would be about $30,000 more now compared to June when it was done.

  2. #32
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    Quote Originally Posted by R650R View Post

    This new BS of 'deadline sale' and price by negotiation annoys me greatly, very few properties have asking prices or even offers above $$$$ etc...
    Any tricks to working out a starting point....

    Once you see a place you really like anything lese besides LIM reports, valuations and engineers reports etc?????

    Cheers
    - Think about risks such how many interest rate rises could you afford or be willing to accept. Currently we are in that point of the economic cycle where rates may start going up, question is how quickly.
    - Another thing is devaluation. Property in NZ is very expensive and you should think about if the market were to tank would you be ok with that eating into your equity.
    - You should calculate if renting is still cheaper than buying (in Auckland it is much much cheaper). If you have an awesome landlord it can work really well.
    - Think about the opportunity cost of spending those savings.


    When bidding/negotiating the real estate agent will give you a figure the seller has in mind. Without stating the obvious they work for the seller, not you. They are pretty much there to rip you off.
    Never get emotional, never tell them how much you love the place. Don't give any hints on what kind of a purchaser you are (first home buyer/upgrading/investor etc). They use this information to sell you in. You tell them you are investor they will give you a market report on how well the area has done, what rents are like etc. If you are an occupier with young kids, they'll tell you how good the amenities are, schools etc. So do your homework. Look at council plans/news to see developments/upgrades etc in that area for the next 10 years. Ask the agent plenty of questions. Why the seller is selling, how long it has been for sale, when do they want to settle, how many serious bids have been tendered, possible to buy pre auction (only do this if you think the property is a steal). Find something wrong with the property. Could be anything. Carpet, curtains, cracked weatherboard etc. Get an estimate of repairs/changes and use this to justify lowering your offer.

    Don't be ashamed at making a low ball offer. i.e. they want 300k and you offer them 250k.
    When making an offer give them a time limit. I.e. Unconditional offer of $400k, this expires at 12:00 noon today. Take control of the situation. You are the wally with the cash - you hold the power.
    If it's an auction don't start bidding, only bid if you have to. If you get stuck in a bidding war increase in small persistent increments. Don't start off with 10k, then 5k, then 1k then $500 etc... People will gauge where your level is. Stick with $1k and always add up on counter bids unless it's above your target price where then you stop.

    Anyway this all basic you probably know type stuff. One thing i'd really stress though is not getting emotional about losing out on an opportunity to buy a house - I see this often. I'd rather not overpay for something and keep my hard earned money. Good luck.

  3. #33
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    Quote Originally Posted by haydes55 View Post
    I've recently bought a house in kihikihi. Don't believe everything anyone tells you. My lawyer almost cost me the house a couple of times.
    cool stuff thanks, any further enlightenment on lawyers mistakes/actions???
    Govt gives you nothing because it creates nothing - Javier Milei

  4. #34
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    Quote Originally Posted by aprilia_RS250 View Post
    -

    Anyway this all basic you probably know type stuff. One thing i'd really stress though is not getting emotional about losing out on an opportunity to buy a house - I see this often. I'd rather not overpay for something and keep my hard earned money. Good luck.
    Some of it but lots of good new info there thanks
    Govt gives you nothing because it creates nothing - Javier Milei

  5. #35
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    Quote Originally Posted by haydes55 View Post
    I've recently bought a house in kihikihi.
    Went through Kihikihi once, had our wheels stolen and we didn't even stop.

  6. #36
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    Quote Originally Posted by R650R View Post
    cool stuff thanks, any further enlightenment on lawyers mistakes/actions???
    The lawyer told me I had to notify the bank that the house showed a positive reading for meth (below the guidelines). Then get the bank to send a letter confirming they will still lend us the money with the reading.

    Called the bank, the bank revoked our preapproval the day before unconditional day. The bank said even if we decontaminated the house and got a reading of zero they wouldn't take the risk. They also said we weren't obliged to tell them about the meth result.

    We then went to a mortgage broker and within the day he had sorted a new bank and got us the same deal.

    The lawyer then wanted a letter from our insurance that said they will cover the house with the meth. Told her we wouldn't do it.

    Our lawyer also frequently ignored emails and phone calls regarding settlement dates and extensions etc. Because she didn't contact the vendor to get a date for our house to settle on (title still hasn't been issued for the subdivision of land). So our new bank ended our preapproval, until we could get a settlement date. This was after 2 extensions to the preapproval already.

    After a day, our mortgage broker had contacted the vendor and the council, found out an approximate date and extended the preapproval 2 more month even though the low equity funding had since dried up.

    On average when we contact the lawyers it takes 2 to 3 days to get a reply, if we get any reply at all.

    Our purchase agreement had a clause, if title wasn't issued before 31 November we can opt out of the agreement and move out. The vendors lawyer contacted us directly because they had no response from our lawyer as to whether we wanted to stay or move.

    She has been helpful sometimes, but to be completely honest, I don't see any benefit of having a lawyer at all. Get a good mortgage broker and just use a generic purchase agreement. Lawyers just copy and paste a generic one anyway and delete the clauses you don't have off it. A lot of money for no work.

  7. #37
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    Quote Originally Posted by Maha View Post
    Went through Kihikihi once, had our wheels stolen and we didn't even stop.
    Coming from the guy in Mangakino haha. Kihikihi isn't too bad. I've found no graffiti around the place. The neighbour are sheep and horses, so they keep the volume down at night. There are a few bogans living out here, so I'm at home.

  8. #38
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    Beware of houses built from early - late 90's. Untreated timbers were the flavour of the month and caused the leaky building crisis. Especially bad when hardies shit was on the outside of the walls.




    As for selling. A mate got stung badly by his agent insisting on selling by auction. One bid only a few dollars over the reserve and he still had to sell.
    He says sale by tender is the best option.
    Take offers and see if you like the prices. If you are not happy then there is no obligation to sell AND you then still have the option of holding an auction.
    TOP QUOTE: “The problem with socialism is that sooner or later you run out of other people’s money.”

  9. #39
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    Quote Originally Posted by Swoop View Post
    Beware of houses built from early - late 90's. Untreated timbers were the flavour of the month and caused the leaky building crisis. Especially bad when hardies shit was on the outside of the walls.




    As for selling. A mate got stung badly by his agent insisting on selling by auction. One bid only a few dollars over the reserve and he still had to sell.
    He says sale by tender is the best option.
    Take offers and see if you like the prices. If you are not happy then there is no obligation to sell AND you then still have the option of holding an auction.
    How did your mate get 'stung' when it was his job to set the reserve?

  10. #40
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    Quote Originally Posted by Swoop View Post



    As for selling. A mate got stung badly by his agent insisting on selling by auction. One bid only a few dollars over the reserve and he still had to sell.
    He says sale by tender is the best option.
    Take offers and see if you like the prices. If you are not happy then there is no obligation to sell AND you then still have the option of holding an auction.
    The reserve price is set a price of what the vendor is willing to accept. When we hit reserve, our agent came to us and asked what we wanted to do when reserve was reached, he suggested that he could get more so we agreed and he went out and got us another $3K.

  11. #41
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    Quote Originally Posted by Maha View Post
    The reserve price is set a price of what the vendor is willing to accept. When we hit reserve, our agent came to us and asked what we wanted to do when reserve was reached, he suggested that he could get more so we agreed and he went out and got us another $3K.
    Eh??? What did he think you wanted to do? When the reserve (the minimum amount you are willing to accept) is reached the house is selling innit??? It was an auction wasn't it? The bidders bid the extra $3k, how did your agent 'go out and get it'?

  12. #42
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    Quote Originally Posted by jasonu View Post
    Eh??? What did he think you wanted to do? When the reserve (the minimum amount you are willing to accept) is reached the house is selling innit??? It was an auction wasn't it? The bidders bid the extra $3k, how did your agent 'go out and get it'?
    Yes, at the point of reaching reserve, it is selling........not sold. A property at Auction is sold only when the bidding stops and everyone is happy. The auctioneer is there to get as much as he/she can for the vendor, and in our case...he did.

  13. #43
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    Quote Originally Posted by haydes55 View Post
    . Don't believe everything anyone tells you. My lawyer almost cost me the house a couple of times.
    How? 10 characters
    I thought elections were decided by angry posts on social media. - F5 Dave

  14. #44
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    Quote Originally Posted by Swoop View Post
    As for selling. A mate got stung badly by his agent insisting on selling by auction. One bid only a few dollars over the reserve and he still had to sell.
    He says sale by tender is the best option.
    Take offers and see if you like the prices. If you are not happy then there is no obligation to sell AND you then still have the option of holding an auction.
    There is no obligation on a vendor at all. And who held a gun to his head and forced your mate to sign a contract? Vendor signs last not first. If he wasnt happy he just walks out the door. And guess what? Vendor sets the reserve too.

    Your mate got fucked by himself and is looking for someone to blame.
    I thought elections were decided by angry posts on social media. - F5 Dave

  15. #45
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    Quote Originally Posted by Akzle View Post

    4)dont pay lawyerjews. for anything. ever. that shit just encourages them. if you see a lawyer jew you should spit on them. tarring and feathering optional but recommended. vote akzle.
    indeed. This is likely the best advice in this thread.
    I thought elections were decided by angry posts on social media. - F5 Dave

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