When you choose a new home, instead of a second hand one, you save yourself a lot of headaches and all the trouble of adapting someone’s else’s old home to fit your lifestyle. Best of all, you are the one who gives your home its character from day one, so it can give you pleasure for years to come. These are the reasons why:
1. Your new home will look the way you want it to. The walls, floors, carpets and decoration will reflect your taste, not the previous owner’s.
2. You have no major repairs to worry about.
3. Most new homes come with a 10 year Homebond Structural Guarantee.
4. New homes have better insulation and are more economical to heat than older homes. That saves you money and helps the environment.
5. All new homes must conform to strict safety standards.
6. New homes are designed to suit modern lifestyles and usually include fully fitted and equipped kitchens and bathrooms and adequate security systems.
7. In order to get a new scheme off the ground, developers will often price the first phase very competitively. If you buy in the first phase you can get good value for your money.
New home buyers don’t want a used house when only new will do. The home must be brand spankin’ new, fresh and clean without so much as a finger print on the walls.
If this describes you, and you have always fantasized about buying a brand new home of your dreams, here are a few tips that can help you to protect yourself -- to make the process a pleasant experience.
Don’t Automatically Use the Builder’s Lender
n Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it’s one-stop shopping for a builder. But a builder’s lender might not offer you the best deal. Moreover, the builder may own the lending company.
n Consider alternate sources to find a lender. Your own bank or credit union might offer you very attractive rates and terms, based on your banking history with that institution. Your agent may refer you to his or her private list of wholesale lenders.
n Shop around and interview your lender. Find a banker or mortgage broker whom you can trust and with whom you feel comfortable doing business.
n Ask to see a copy of your credit report. You can order your own free credit report before shopping for a new home.
Obtain Legal Advice Before Buying a Brand New Home
n Before you sign a purchase contract, talk to aproperty solicitor. Standard purchase agreements are designed to keep everybody out of court, but they don’t necessarily contain language that protects the buyer.
n Ask questions about your cancellation rights. Make sure you understand your liability and commitments.
n Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it’s probably because it’s a valid concern and other buyers have gone to court over it.
n If a buyer has a bad experience with a builder, the word spreads rapidly throughout a community. But you won’t know if a bad rep is an isolated experience or if the builder repeatedly brings bad publicity to itself without checking and verifying the public records for lawsuits.
n Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building identical or larger homes in the area or is construction lagging and homes shrinking in size?
n Find out whether the builder sells to investors. Some builders require all their homes to be owner occupied. Others eagerly sell as much inventory to investors as profit margins will allow. If the market suddenly dips, investors are typically the first to bail and, besides, part of the reason you are buying in a new estate is to be surrounded by other buyers just like you, not tenants.
Hire aS urveyor
n Always, always, always get a home inspection when you buy. And hire a licensed and accredited surveyor to perform the inspection - not your dad or your DIY pal, get a real inspector. Be there for the inspection and ask questions because a new home can contain defects.
If you’re like most first-time home buyers, you’ve probably listened to friends’, family’s and coworkers’ advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are eight good reasons why you should buy a home.