Most people will make one of the largest purchases they will make in their lifetimes when they buy a home. Whether it is a new home or an existing home, there are several aspects to take into account.
The first thing you need to keep in mind when purchasing or building your new home is that it is an investment, whether you stay in it forever or consider reselling it later on. By looking at it this way, you should always cater for the fact that you may sell it one day.
There are many areas to consider: location, schools, services, future plans, orientation, construction, builder reputation, extras, model home, financing, agents, selling your current home, and investment. Every situation is different so be sure to look at yours specifically.
In Canterbury especially, location is one of the most important considerations. Due to the recent events we had, you must weigh-in carefully where you’re building or buying your new home. The stability and quality of the land are a top consideration for any Canterburian. Earthquakes aside, the location affects the price you will pay for the home and future sale.
Some of the things to consider when considering location are access to transit and commuting, access to shopping and leisure activities. Many people like to be near their children’s schools and school zoning can have a big impact on price, and huge benefit at the time of the resale.
Another variable to consider when purchasing your new home is future plans for your area. What is going to be built beside you, behind you or across the street. Imagine just moving into your new home when construction starts on the lot across the street, which was previously zoned as unplanned, for something that might completely change the area, including traffic, etc.. In some cases it might even devalue your home so be sure to investigate what the plans are for the area.
Another important point is to verify the builder has a quality reputation, whether they will deliver your new home on time and meet the quality standards you are looking for. Talk to other owners to find out their experiences. A good builder should give you the right advice regarding of your home in regards to sun exposure and other important factors.
Financing is one of the biggest headaches for many people. There are many types of deals that consumers are being offered some sound to be good to be true, however in the long run, it is your family and your life and you need to evaluate each financial deal to ensure it is reasonable and financially sound. A good rule of thumb is to avoid principle, interest and tax payments that take more than 35% of your salary. Most people can manage nicely if they stay under this number.
As we said at the beginning, look at your home as an investment that you will be selling sometime in the future. Talk to your agent about resale values and were the market is headed. If you are selling another home to enable purchase of your new home, consider the timing to ensure that you are not left supporting two mortgages if your home does not sell or left homeless because your new home is not ready.
And be sure to do your homework. Talk to building companies that have experience in this themselves and can give you holistic advice. A good building company should get you to consider each of these aspects and will work with you to give you the best advice.