© Copyright 2024 Tella (New Zealand) Limited. All Rights Reserved. Powered by Tella.
31 minute read
Navigating Your Journey for Homeownership
We're here to guide you through the exciting journey of homeownership. Let's dive into the details and make your homeownership dreams a reality!
Andrea Rowlands
08 January 2024
Please Note: This newsletter was originally published on 8th January 2024. While the information presented here may still be valuable, some aspects may be outdated.
Achieving your homeownership goals begins with strategic planning. Here are some key steps to consider:
1. Budgeting Matters:
Keep a close eye on your spending and consider setting aside money each month in a separate account. Showing you’d have the income to cover essential expenses like rates and insurance can strengthen your position when applying for a home loan. Clearing credit card debts and discontinuing laybuys or afterpays is a smart move.
2. Assembling Your Team:
Engage with professionals who will be crucial to your journey:
Home Loan Adviser / Mortgage Broker:
Selecting the right professional is vital. Our advisers understand that not all homebuyers have the same needs. Whether you're building a home or working with a 5% deposit, our team guides you through various options, explaining why a particular bank suits your unique circumstances. It's worth noting that advisers are compensated by the banks when you secure your home, so there's no additional cost to you for the invaluable support they provide.
Real Estate Agent:
Beyond the traditional role, some agents go above and beyond. Collaborative agents can streamline your experience by showcasing homes from other agents’ listings, making your home search simpler.
Securing pre-approval and understanding your borrowing limit adds another layer of advantage. By reaching out to agents with this knowledge, you can inquire about upcoming listings in their area that may not have hit the market yet. This proactive approach positions you to be among the first to explore and potentially secure these yet-to-be-advertised homes.
Insurance Broker:
Safeguard your investment by making sure you have comprehensive coverage. Going unconditional on a home is smoother when you've verified your insurance coverage with a trusted broker. Older homes, in particular, may raise concerns about past renovations to foundations, electrical, or plumbing. It's crucial to make sure you can get insurance!
You can typically secure insurance up to six weeks before settlement, so plan accordingly and factor it into your budget. By addressing insurance early in the process, your transition to homeownership will be much smoother.
Solicitor / Conveyancer / Lawyer:
Whether it's your first home, an investment, or a refinance, the essential service you'll need is conveyancing. You can opt for dedicated conveyancing firms or enlist the assistance of solicitors, often backed by Registered Legal Executives for extra support. Find someone you're comfortable with, as they play a crucial role as the intermediary between you, the vendor's solicitor, and the bank.
These professionals are your go-to for signing documents, transferring funds, updating titles, and managing council rates and water payments. Beyond being a service, they're a wealth of knowledge, ready to answer your questions.
Consider discussing estate planning (will options) at the same time. Opt for firms with fixed prices, especially if you're a first home buyer with many questions.
While pre-approval doesn't require a solicitor/conveyancer, note their details when making an offer, as they'll review the agreement for you. If you're unsure where to start, we have preferred partners depending on where in the country you’re based.
Building Inspector:
In today's real estate landscape, a building report is often a legal or bank requirement. Just as you wouldn't buy a second-hand car without a mechanic's inspection, investing in a home – a more substantial asset – warrants similar scrutiny.
Inspectors go beyond the surface, checking foundations and roofing. Remember, these reports focus on issues, not the positives. Distinguish between minor maintenance and potential financial burdens, ensuring you grasp your home's true condition before finalising any deal.
Accountant:
For our self-employed individuals seeking pre-approval, it's crucial to plan ahead. If your financials are freshly completed, fantastic! If they're not, be prepared to provide them as soon as you can. Depending on the time of year or your financial cycle, forecast or management accounts may need to be prepared, adding an extra layer of time. Ensure you factor in this potential delay when working towards pre-approval.
Registered Valuer:
When your deposit falls below 20% of the purchase price or you're acquiring a newly built or off-plan property without a title, a Registered Valuer becomes essential.
The good news? You don't have to search for one – your adviser or bank handles this, though it comes at your expense. With a standard turnaround time of approximately 6 business days, it's crucial to factor this into your timeline. For offers on a property, ensure a reasonable finance timeframe, considering the valuation process and subsequent bank review, which may take an additional day or three.
Tailoring Your Team to Your Needs:
Remember, not all these professionals may be required – it depends on your unique circumstances. Your journey to homeownership is as individual as you are.
Start the Conversation:
Not sure where to begin? Schedule a quick 15-minute chat here to discuss your home ownership goals and aspirations. We're here to help you navigate the exciting journey ahead!
Category:Newsletters
Category:
Newsletters