HouseMe Legal’s Top Tips for Buying Residential Property
Knowledge is Power
Background Info: As with everything you do in life, the more you know the better you feel when making a decision.
Action: Read or check out the following information:
Finance – Getting Pre-Approval
Background Info:
- Click here for a summary of how to work with a mortgage broker to get pre-approval from your lender to buy a property.
- Click here to understand how you can build a deposit for your home.
- Click here to see what a bank may lend you based on a 20% deposit.
- Click here to understand how a finance condition can protect you.
Action: Talk to a mortgage broker, get pre-approval, and start looking around at open homes. Don’t get disheartened if you miss out. Stay patient.
Finance – Help from your Parents
Background Info: Click here to summarise how you can record any money your parents want to contribute towards your property purchase.
Action: If your parents want to help you buy a property, talk to them about entering a DOAD or a DOG.
Finance – Kiwisaver and First Home Grant
Background Info: Click here for a summary of how withdrawing your Kiwisaver works.
Action:
- Complete the Kiwisaver checklist here.
- Send the email in the link to your Kiwisaver provider so you know how much you will be able to withdraw – factor this into your budget.
- Complete this questionnaire to see if you are eligible for a First Home Grant
Doing your Due Diligence
Background Info: Click here to understand HouseMe Legal’s/your allocation of due diligence responsibilities.
Action: Start completing all the due diligence tasks that are allocated in your name. Reach out to Angus to complete any that require both of you to complete.
- Free DYI Due Diligence Checklist
- Ask the Pros Due Diligence Checklist
Protect yourself with a Conditional Offer
Background Info: Read our guides for conditional offers:
Action: If you are making an offer, we strongly recommend you cover yourself with adequate conditions to protect yourself. To do this, ask the agent to include your conditions in the agreement. Watch out, the agent may try to change your mind and coerce you into submitting an unconditional offer but remember, the agent acts for the vendor and not for you. If you don’t add in any conditions and submit an offer, then you:
- need to do all your due diligence in advance (even if you do this, the vendor may not even accept your offer and this may be a costly exercise); and
- won’t be protected (can’t cancel the agreement) if you find out something is wrong with the property after you sign the agreement.
When it’s Time to Make an Offer
Background Info: Click here to check if you’re ready to make an offer. We appreciate this may not be right now but it is for you to refer to at a later date. Don’t worry, we will remind you.
Action:
- Review this table to understand what you need to do to be in a position to make an offer.
- Review this post to understand how the negotiation process works.
Relationship Property
Background Info: Read this summary.
Action: Read the following information:
