Essential insights for first home buyers

When I bought my home, I knew I wanted to live in a suburb which was close to bush walks and parks. What I didn’t consider as much was the area immediately surrounding the house. Consider public transport links for your street. How busy is the road? Is it going to be easy to get out of your driveway? Is there off street parking? Any road noise concerns? Visit during the week and on the weekend to get a feel for noise.

Understanding who the neighbours are can help you feel at ease before buying. Ask the agent what they know about neighbours. Joining a local community page can help. Consider privacy & aspect - is there any overlook from neighbours?

Assess the physical environment surrounding the property including the slope of land and any nearby streams or creeks which could flood. Does the property get enough sunlight? How much maintenance is the property likely to need? Are there lots of trees or hedges to maintain? Older homes might have more character but often require more upkeep which can eat into weekends.

Research the decade of the house. What materials is the house made of and what issues do these tend to have? Getting a dedicated water tightness inspection (on top of a builders report) is important if you have any reason to suspect water tightness issues such as monolithic cladding, musty smells or stains on the ceiling or carpets.

Owning a home comes with additional costs including rates and insurance. You can use a local council website to find out how much rates will be on the property by typing in the address.

House insurance can vary. Before buying, make sure to get some quotes from insurance companies to make sure the house can be insured.

Research current interest rates. Trade Me’s Mortgage Calculator is an unbiased way to see what you can afford. It pays to budget for more than what current interest rates are to ensure you can continue to pay your mortgage should your circumstances change and also for any unexpected repairs or maintenance.

Find a good mortgage broker. A good broker is worth their weight in gold and can help you make sense of floating vs fixed rates as well as the benefits of each provider. Brokers are paid commission by the bank so won’t cost you anything to use. Friends and family who have already bought homes can often point you to a good person.

Before heading to auction or making an offer, check what similar homes have sold for in the suburb so you know that the offer you’re making is within the ballpark.

Don’t be afraid to let the agent know you’re aware of sold prices in the street or suburb. Arming yourself with market data empowers your negotiation.

Doing due diligence before an auction (getting pre-approval on your mortgage and a builders report done) can give you the advantage of being able to make an unconditional offer. If you feel the property is the perfect one for you, it pays to get these checks done ahead of time to put you ahead of the competition.

Do your research to find a good lawyer and building inspector. Property lawyers have looked at thousands of property documents, know what to look for and can help you navigate any concerns with the vendors and agent. A builder's report can help give you peace of mind that your investment isn’t likely to have any surprises.

Be hopeful but realistic. For many people, their first auction probably won’t be their last. Have a price limit in mind before you head to auction and be prepared to walk away. There will be more homes which match your criteria if the first one doesn’t work out. Consider attending auctions for homes you’re not interested in to get a feel for the process. If bidding at auction bear in mind it pays to have a little extra up your sleeve for negotiation should a home not meet its reserve price.

Understand the market but also understand yourself. Everyone has a different risk profile. It’s important to trust your gut and follow what feels comfortable for you.