Happy new year and welcome to 2019. Like the start of every other year, everyone sets new goals for the new year and hope to achieve it. In New Zealand most people have goals to buy a new home and save up for it. It takes a lot of saving to have enough for the deposit up front and ready to take over, but deposit just by itself won’t be enough as other costs come into effect.
Below we will talk about the important hidden costs that come with purchasing a new house. These types of costs also require you to save up before you start thinking of buying your new house. Mortgage is one of the main costs that everyone knows they must pay on time after the settle in date and most banks now days are offering very low interest rates in New Zealand. So, get in quick if you have the savings and are looking around to buy your new home.
Building report – If you want to be on the safe side then get the building report for your new home to ensure you don’t end up spending your savings on hidden defects in the house, which you might find once you move in. So, get in touch with a qualified property inspector to find out the hidden defects and what the condition of the house is. Getting a building inspection done does cost extra when purchasing your dream home, but it will take the thought of your mind that what if there is defects in the house and some of these defects such as a leaky home might cost you more than you pay for the building inspector to inspect your house. Try buildingsurveyors.co.nz to find a property inspector.
LIM report – Along with your building report it is best to get the LIM (Land Information Management) report as well. LIM report consists of information related to the property including risks as contamination, erosion, flooding and it will give you a heads up on the landslip risks, drainage or any illegal work carried out on property without consent. It might even cover leakage. It is best to get your LIM from the local council or get your lawyer to do so.
Check out How to order a LIM on the Auckland Council website with prices for Standard LIM and Urgent LIM.
LMI Premiums – Loan Mortgage Insurance premiums are paid usually by new home buyers that have a deposit of less than 20%. So you might be liable to pay the LMI if you don’t have deposit over 20%.
Rates – Rates include land/council rates and water which are not covered in the mortgage. Council rates.
House Appliances – Before you sign your contract with your real-estate agent ensure that you check what Appliances are listed in the contract when you move in. If you don’t have essential appliances listed such as Stoves, Washing Machine, Dishwasher, heaters and driers then you will have to purchase your own. This adds to the extra cost right after you move in.
Home insurance – It is very important to get home insurance to properly protect your home and some lenders also encourage you to buy mortgage protection insurance in case of you being made redundant from your job or cannot attend work due to major illness/accident.
Moving Expenses – Finally in this section is cost of moving into your new home. It is best advised to get different quotes from different moving companies in Auckland and choose the best one. Ensure that the moving squad you choose are trustable, honest, good time management, reasonable price and staff are highly trained.
Good luck with your new goals in 2019. Happy moving everyone ?