Possibly buying a house. What things to look for?

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Regs

4064 posts

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Snowflake

#478710 7-Jun-2011 20:29

richms:

Also drainage. Proper stormwater hookup and not just a soakpit etc that will overflow in the first heavy rain.

good point. if you are looking at a house which has an aging soakpit, and you're planning on extending it with another room etc then you're probably looking at another $10K+ to install a council approved soakage device. if you don't upgrade the soakage, then you will get all your building consents rejected. This applies to both houses that are conected to council stormwater, and also houses that have to take care of their own stormwater.

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mattwnz

19378 posts

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#478802 7-Jun-2011 23:34

stevenz: My partner and I collectively earn not a great deal more than the single-person average wage. Do I even want to _consider_ buying a house given that the apparent costs involved would likely result in us living off baked beans for the next 30 years?

Given current market prices we'd have to get an already run-down house in a likely unpleasant area. Is the cost of fixing it up, rates, transport into the city, dealing with the bogans next door etc worth it given that a such a house isn't likely to change in value beyond the national averages regardless of what's done to it, or should we just keep renting indefinately and having a generally reasonable standard of living instead?

I guess it'd be worth looking at many of the same things in a new home as it would be flatting, does the shower work properly? Is there a car on blocks in the frontyard next door with a pitbull chained to it? Are there any obvious results of moisture (mold/mildew/rot/condensation etc) inside?

The main thing house ownership offers is certainty and peace of mind, in that you can stay in it as long as you want. While with renting the owner can get rid of you, and you can be forced to move, with the additional costs that involves. Owning also allows you to do what you want with the house. If you want a nice new kitchen and new carpet, you can do that.

NonprayingMantis

6434 posts

Uber Geek

#478818 8-Jun-2011 01:19

mattwnz:
stevenz: My partner and I collectively earn not a great deal more than the single-person average wage. Do I even want to _consider_ buying a house given that the apparent costs involved would likely result in us living off baked beans for the next 30 years?

Given current market prices we'd have to get an already run-down house in a likely unpleasant area. Is the cost of fixing it up, rates, transport into the city, dealing with the bogans next door etc worth it given that a such a house isn't likely to change in value beyond the national averages regardless of what's done to it, or should we just keep renting indefinately and having a generally reasonable standard of living instead?

I guess it'd be worth looking at many of the same things in a new home as it would be flatting, does the shower work properly? Is there a car on blocks in the frontyard next door with a pitbull chained to it? Are there any obvious results of moisture (mold/mildew/rot/condensation etc) inside?

The main thing house ownership offers is certainty and peace of mind, in that you can stay in it as long as you want. While with renting the owner can get rid of you, and you can be forced to move, with the additional costs that involves. Owning also allows you to do what you want with the house. If you want a nice new kitchen and new carpet, you can do that.

It has its pitfalls too....
http://xkcd.com/905/

Chainsaw

357 posts

Ultimate Geek

#480647 13-Jun-2011 15:05

Of course nobody's mentioned one very important consideration to check when buying a house: your boundaries. And DO NOT TRUST the estate agent to point them out. I learnt from first hand experience.

How do you know where they are? Are you trusting the, probably old, fences? At the very least check your Territorial Authority's aerial photos and check the fences against the Title, though those aerials can easily be out by about 2m.

Jaxson

7680 posts

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#480659 13-Jun-2011 15:42

Good luck to the original poster or anyone else looking to buy.

The fact is there are lots of potential traps and you'll never find them until you have lived in the house.

It's a better market for a buyer now as there is less competition for houses. You probably have some time to check things out, make sure all the documents line up, do a house inspection etc.

If you rewind 4 years or so there would be 30 people turning up for a new listing open home, and 3 offers on that property later in the afternoon. There was no time for inspections etc if you wanted the property as the seller had options of other sellers who weren't being so demanding.

It's a very good point some are making above, get all your finance sorted in advance so you can be poised ready to strike if the right deal comes around. You make your most 'money' by buying sharp at the start, rather than doing it up and hoping for a value increase. Don't be shy to put in a low offer initially. Remember the agent is not your friend, and nor is the seller.

The RV is a readily accessible value to compare between all houses in a town. It doesn't mean it's right at all, but it is a start. As mentioned above, it does exist but take it with a grain of salt. Higher values do tend to assist with a mental image of the place being worth more, but you pay more rates. So ideally it should be low when you buy and then high when you sell.

One bit of advice would be to use the open homes as a first inspection. Go and view hundreds of properties so you know the market and know what a deal is when you see it. Take someone qualified or knowledgeable to assist and take lots of digital photos/film etc as you go around. Try and spot potential issues right from the start.

If you find something wrong you could try to have it fixed as part of your offer. If they take $5,000 off the price you still don't have access to the $5,000 to fix the problem.

I have owned a 1920 and a 1930's property and loved them. They are however very old technology and you can spend a heck of a lot to bring them up to modern standards. If you are young that's probably fine, but if you have kids and suddenly need to heat the place 24hrs a day then they were simply not workable in my situation.

robbyp

1199 posts

Uber Geek

#480681 13-Jun-2011 16:44

Jaxson:

If you find something wrong you could try to have it fixed as part of your offer. If they take $5,000 off the price you still don't have access to the $5,000 to fix the problem.

I have owned a 1920 and a 1930's property and loved them. They are however very old technology and you can spend a heck of a lot to bring them up to modern standards. If you are young that's probably fine, but if you have kids and suddenly need to heat the place 24hrs a day then they were simply not workable in my situation.

When first visiting a property, ask the agent what known problems there are with the property. That should be the first thing you do.
One thing with taking an amount off to fix the problem. Things will usually cost more than you think they will cost to fix a problem. Therefore add a margin for this and also for your own time in getting it fixed. It is usually best for the person selling to get it fixed up, but from my experience they will not get that work done, and will sell as is. They may say that allowance for that has been made in the selling price, however if it is an issue that wasn't initially disclosed when you first asked them, then there maybe other issues. It;s also best to get everything in writing. I have found agents however prefer to phone you, rather than emailing, so there is no written record, but if this happens, make your own dated notes of any conversation.

Also ask them whether there are any fencing requests from other neighbours, to build or rebuild a boundary fence, as you have to pay half. A hedge is not a fence either, and neighbours can ask you to replace a hedge with a fence.

oxnsox

1923 posts

Uber Geek

#480682 13-Jun-2011 16:50

Not certain these have been mentioned:

Always ask the agent if there's anything you should know about the property and neighbourhood (that isn't written on their ad / flyer). They're actually bound to tell you if they know, and sometimes sellers will tell them things they don't readily divulge.

If you have no knowledge of the area ask the agent what changes are planned for the community... Road widening, Mall at the end of the road, Motorway a few blocks over... all things that will have an impact on your decision... especially if you didn't know.

Finally, do a 'pre-purchase inspection' the day (or even a few hours) before your deal is due to go through. Furniture and pictures can hide damage to walls and carpets, and distract you from seeing other damage that'll cost you to sort out. You can delay settlement if things aren't as they should be.

robbyp

1199 posts

Uber Geek

#480684 13-Jun-2011 17:05

oxnsox: Not certain these have been mentioned:

Always ask the agent if there's anything you should know about the property and neighbourhood (that isn't written on their ad / flyer). They're actually bound to tell you if they know, and sometimes sellers will tell them things they don't readily divulge.

If you have no knowledge of the area ask the agent what changes are planned for the community... Road widening, Mall at the end of the road, Motorway a few blocks over... all things that will have an impact on your decision... especially if you didn't know.

Finally, do a 'pre-purchase inspection' the day (or even a few hours) before your deal is due to go through. Furniture and pictures can hide damage to walls and carpets, and distract you from seeing other damage that'll cost you to sort out. You can delay settlement if things aren't as they should be.

You normally make the sale conditional on a satisfactory property inspection. This is so you are not out of pocket on an inspection, should they not even accept your offer. You can however do your own inspection beforehand, by taking someone who knows buildings with you.

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