5 Signs You’re Ready to Buy
You feel it in your fingers, you feel it in your toes: The property market is humming. As the construction of new homes keeps on moving up across the country, more and more homes are likely to become available in your area.
But how do you know if you’re actually ready to buy? Let’s take a look at the five things you need to know before you take the plunge and buy that home – are you prepared to make a move?
Ready or Not?
You feel it in your fingers, you feel it in your toes: The property market is humming. As the construction of new homes keeps on moving up across the country, more and more homes are likely to become available in your area. Whether it’s a calm three bedroom villa in a leafy outer suburb or a townhouse near the hustle and bustle of the big city, or even a country homestead with an acre or two, the options are all around you.
But how do you know if you’re actually ready to buy? We’ve dealt with a lot of people purchasing property in our time, and think these are some of the key indicators that you are truly ready to take the plunge.
You’ve got the deposit
In this day and age, it’s pretty difficult to walk up to the bank and get a 100 per cent home loan – you have to bring something to the table. Saving up for the deposit on a first home is the crucial first step to knowing you’re in a good place to buy. It gives you the leverage to secure a better deal, and means you can avoid extra costs such as lenders mortgage insurance. Save so you can spend!
Your Credit Rating is Positive
If you’ve taken out a credit card, opened a power bill in your name at a flat or signed up for a mobile phone plan, you’ll have a credit rating. Whether it’s good or bad depends on your payment! When you take out credit in any form, you should make sure you stay on top of your payments. This ensures that you come out with a good credit score, which puts you in good stead with mortgage lenders.
If you find that you have a bad credit rating, it may take some credit repair to get back on track. Challenging incorrect listings and getting on the path to good credit behaviour are two ways to improve your standing.
You Know the Market
If your finances are in order, you’re starting to look ship-shape for a property purchase. However, that’s only the first step! You have to know the market. Can you tell a buyers’ market from a sellers’ one? Have you researched where hot spots are, and what your capital gains could be? Are there parks and shops nearby? Understanding where you want to buy is crucial.
You Understand the Commitment
Remember – when you buy a home, you’re in it for the long term. Typical home loans last up to 30 years, so it’s a big stretch over which you should plan out your payments. Of course, interest rates and your financial situation will change over time, so there may be opportunities to refinance, change loan terms or even leverage your home into a new purchase. But it’s all with an eye on the long-term. Make sure you understand what you’re getting into and are prepared!
You Know it’s What you Want
We’re often told the Kiwi dream is owning your own house, with two and a half kids and a red door and big backyard. But times change, and with it, so do our tastes. Nowadays, lots of people prefer to own an apartment, or a more compact house close to the city. You don’t have to subscribe to what you’re told is the right type of property, because one size doesn’t fit all!
When you find the one you want, you’ll feel it in your bones. If you know exactly what you want, have the funds to get it, and understand the process, we’d say you’re ready to move forward and buy!
To help make the buying process as smooth as possible for you, the team of experts at Harveys are here to help.