T: 09 430 3300
Allens Whangarei Office 		T: 09 434 3034
Allens Tutukaka Coast Office 		T: 09 433 0334
Bream Bay Office
Buying With Allens

This information has been developed to guide you through the process of buying a home or property. We have isolated five major steps involved in home buying and aim to provide you with information to ensure that you make well-informed decisions every step of the way. The five steps are:

1. Creating a Plan.
2. Selecting a Team of Advisors.
3. Finding a Property.
4. The Purchase.
5. Your New Home.

Creating a Plan

What Do You Want in a Home or Property?
Location, location, location. Everyone has heard that expression in relation to real estate and location is certainly among the most important things to look for when you’re buying a home. The reason being, that homes in desirable areas tend to hold their value, and re-sale is easier. However, the location of your new home will also depend on your lifestyle, family needs, budget and long-term plans.

Some things to consider are:
Proximity to work, schools, friends, shops, cafes and other services.
Zoning - this is important if you plan to operate a business from home.
Proximity to parks, beaches and recreation facilities.
Recent sales in the area and price trends.
Future planning - motorways, shopping centres, public transport.If your home is an investment, then consider:
Whether you require a fast growth investment or not.
The likely return on your investment.
The appeal of the area to tenants, e.g. proximity to services.

Develop a detailed wish list of what you would like in a home or property. It is best to start with a clear idea of what you would like ideally - but remember you may need to compromise in some areas. Start with practical issues, such as how many bedrooms and bathrooms you need, whether you need garaging or simply a car space, would you like a garden, lawn, patio. Think about the type of home you would like - new, old, an apartment or town house. What style of home best suits your requirements, a character home, a modern architecturally designed home?

Complete a wish list (such as the one supplied in this document) and discuss this with your real estate consultant to help find the right house for you. It makes the search a lot easier if you have narrowed down some of your options.

To know how much you can afford to pay. As well as the price of your new home, you need to factor in the costs involved in its purchase - like legal fees, obtaining a valuation report and having services such as gas and electricity connected - plus your ongoing costs.

The amount that you can afford to pay for you new home depends on three things:
1. The amount you have saved.
2. The amount you need to borrow.
3. The amount you can afford to pay back on a regular basis.

We suggest that you to speak to your financial advisor who will give you guidelines on how much you are able to borrow. It may also be beneficial to talk to your bank or mortgage lender about providing a pre-approved home loan certificate. This provides conditional approval that the bank /mortgage lender will lend you up to a certain amount for the purchase of a property. Pre-approved finance lets a vendor know that you are serious about buying a property, and that you have access to finance. It can speed up the buying process and make your offer more attractive to vendors.

One-Off Costs
Average Cost - Based on a $250,000 property.

  • Deposit (5-10% is normal) $12,500 - $25,000
  • Legal fees $700 - $1800 .
  • Building consultant’s report $300 - $800
  • Engineer’s report $500 - $2500
  • Valuation report $300 - $500
  • LIM or PIM report - $180+
  • Bank fee for mortgage $250 - $500
  • Lenders mortgage insurance $0 - $1,800
  • Share of rates re-paid by previous owner $100 - $1,000
  • Moving costs $200 - $2,000
  • Phone connection fee $30 - $80
  • Electricity connection fee Free - $75
  • Gas connection fee Free - $75

Ongoing Costs
There are a number of additional costs involved in buying a home, which you should budget for. The below figures are intended to be used as a reference only. For up-to-date pricing on your anticipated loan amount you may like to call into your bank or visit their website for the latest interest rates and pricing. Other one-off costs to consider could include new furniture and whiteware, home security and urgent repairs.

Average Fortnightly Cost - Based on a $225,000 loan @ 7.5% for 25yrs.

  • Mortgage Repayment $694.00 - $781.00
  • Rates ($500-$2000 p.a.) $20 - $80
  • House insurance (150sqm home) $26 - $28
  • Contents insurance ($50,000) $20 - $50
  • Mortgage protection insurance $21 - $58
  • Repairs and maintenance ($2500 p.a.) $0 - $100
  • Water rates ($800-$1500 p.a.) $30 - $60
  • Body corporate levy ($1000-$3000 p.a.) $40 - $115

Understanding the Market
The "market value" of homes are primarily determined by the amount that similar homes in the same area are selling for at about the same time as you are buying. Their value will also be determined by influences as diverse as consumer confidence, New Zealand’s monetary policy or perhaps the reputation of a local school. As a result, market value constantly fluctuates, so it’s probable that a house that sold a year ago would fetch a different sale price if it sold today.

There are three types of markets - a buyers’ market, a sellers’ market and a balanced market - and the market you enter will have a bearing on the decisions you make in terms of buying your home. As a buyer, your ideal market would be a Buyers’ market, where there are more homes for sale than buyers. Home sales may be slow and prices competitive. There is little opportunity for vendors to negotiate on price. In a Sellers’ market there are few houses available and those on offer sell quickly and secure good prices, where there are a number of potential buyers. An Allens real estate consultant can give you advice about the state of the market, the types of properties being sought by buyers, how much they are selling for and how quickly sales are being made.

 

Selecting a Team of Advisors

When you are buying a home you will need advice from several professionals at various stages of the process. You may already have relationships with some - perhaps a lawyer or a financial advisor - while others may be new to you.

A Real Estate Company and Consultant
Select a reputable company, recommendations are often the best way to start. Allens Goode Leith Realty Ltd has a huge degree of goodwill within the community, and over 80% of our clients are either recommended to us by family or friends or are return clients. This is a reflection of the high level of service Allens provide. Our company mission statement is to provide the ultimate real estate experience therefore quality service and advice is exactly what you will receive.

Allens have a huge selection of properties listed at any time across all price brackets and styles. Our coastal offices are located on two of Northland’s beautiful coastlines: Bream Bay; and Tutukaka, and attract a range of coastal and rural properties while our main office in Whangarei hosts residential, rural and commercial properties. All of these properties are available for viewing on our easy to navigate web site at
www.allens.co.nz.

Should you happen to find a property for sale that you are interested in with another company, we are able to arrange an inspection through the listing agent, at no cost to you or the vendor.To contact an Allens Consultant:
Whangarei (Main Office) Cnr Porowini Ave and Tarewa Rd Phone 09 430 3300

Email sales@allens.co.nz  www.allens.co.nz

Tutukaka Coast Phone 09 434 3034 Email tutukakacoast@allens.co.nz

Bream Bay Phone 09 433 0334 Email breambay@allens.co.nz

A Lawyer
We suggest that you choose a lawyer early so you have someone on hand when you are ready to make an offer on a home. It is important to always seek legal advice before you sign any offer or legal agreement.Your lawyer’s job is to:

  • Protect you by checking offers and contracts.
  • Explain your legal rights.
  • Ensure ownership of the home is in order.
  • Check the property details with your local authority.
  • Oversee the purchase settlement.

To find the right lawyer ask friends or family for recommendations. Check that they have a current certificate and that they regularly deal with residential/property work. Shop around and get several prices. Once you have selected a lawyer get an estimate and ask that they keep you informed if the cost will exceed the estimate. The cost of legal work on the purchase of a home can range from $500 to $1500, plus up to $300 on other costs such as land transfer fees.

A Property Valuer
Having a valuation report done by a registered valuer on a house you are considering buying will give you a good idea of its market value, and also provide detailed information about the property. You may be required to provide a valuation report before you can secure a home loan. Your bank will have a list of valuers who they prefer to use.

  • To find the right valuer:
  • Ask your bank, lawyer or Allens Real Estate Consultant for a recommendation.
  • Make sure they are registered and have a current certificate.
  • Do they normally do residential work, how well do they know the area?
  • What is their fee, what does it cover and when can you expect the report?

While all homes have a Rateable Valuation (formerly called a Government Valuation or GV), it often doesn’t relate to the sale price nor does it include items like carpets, curtains, appliances and the added value of recent renovations. The cost of a valuation report can range from $500 - $1,000. (It may be worthwhile to ask for a short report if you are not certain you will buy the home.)

A Building Consultant / Engineer
We suggest that you obtain a report from a building consultant before you buy, particularly if it is an older style home. If there may be a problem with the land, for example, it is on a steep or unstable section, you may also need an engineer’s report.

To find the right building consultant or engineer:
  • Ask your bank or lawyer for a recommendation.
  • Contact the Building Research Association or the Master Builders Federation for local providers.
  • Ask if they do residential reports and what they check for.
  • Ask about their experience and qualifications - ask for references.
  • Find out what their fee is, what it covers and how soon you can expect the report.
  • Ask about getting a short report first to save costs in case you don’t buy the property.
  • Discuss the job and your concerns before you contract them.
  • Ensure they have professional indemnity insurance in case they make a mistake that ends up costing you money.
  • Ask for a contract so you know what you are getting and at what cost.

The cost of a building consultant’s report can range from $300-$800 and an engineer’s report can range from $500-$2500 depending on the property.

A Financial Advisor
It is often a good idea to consult with a financial advisor on your plans for the future and whether these plans are financially achievable for you. You can obtain financial advice from banks, brokers, or from independent advisors, but always keep in mind that there are no guarantees of ‘good advice’.

Financial advisors may have conflicts of interest. For this reason it is a good idea to ask them if they are receiving money from anyone else in connection with the advice they are giving you.

Ensure the advice you receive is comprehensive and not just targeted to the financial planners’ company business. So while banks and other such companies offer free financial planning advice, it is always a good idea to shop around and do your homework when choosing a Financial Advisor.

It is a good idea to source an advisor with membership in The Institute of Chartered Accountants of New Zealand, New Zealand Stock Exchange, Financial Planners and Insurance Advisors Association. Membership in any of these organizations ensures that your advisor will adhere to a professional code of conduct

One point to remember is that a good Financial Advisor will emphasise the importance of managing debt, and reducing your debt.

 

The Search

You are now ready to start looking for your new home.
Here’s how to start the search and some reminders about what you should check out. We’ve also included some pages so you can make notes about homes and properties you visit. There’s nothing worse than getting home after you’ve seen a potential new home, only to realise you’ve forgotten an important detail.

Where to start

Newspapers
Look in your local Property Guide to get an idea of house prices and what’s available in the areas that you are interested in.

Real Estate Consultants
Not all homes are advertised, so contact your Allens real estate specialist for information on homes that match your requirements. As home buyers, you do not have to pay for this service.

The Internet
Go house hunting by browsing on the internet. Most real estate agents have websites, and there are some well established national websites including Allrealestate.co.nz and Realestate.co.nz. If you are looking for a property in Northland, start your search by visiting Allens new easy to use website:
Allens.co.nz - you can also register for Property Tracker - a free service matching people to properties (simply tell us what you are looking for in a property and how you’d like to be contacted, and we’ll do the rest.) Properties that match your individual requirements are then forwarded to you as soon as they are listed - even before they are advertised.

Open Homes
Visiting open homes is a great way to look at a range of properties without feeling pressured. These visits will help you get a clearer idea of what is on the market, the type of house you can afford and the features that you would like in your new home. Look for the Allens open homes listed in the weekly Property Guide.

The Details
When you first visit a property, check that it has the features that you have noted on your list for your ideal home. Depending on how attracted you are to a particular property will dictate if you can over look certain features in favour of others. We suggest that you make several visits to any home that you are particularly interested in. Visit at different times of the day if possible to see the home in different light. Ask the consultant any questions that you may have and carry out a thorough check of the home, listing anything that may need repair.

Below is a list of things to consider and ask your real estate consultant. Some of the questions we have included may only need to be considered once you have established that you are very interested in a home. If the sales consultant knows anything relating to the value or condition of the property, he or she must tell you if you ask.

Questions to Ask your Real Estate Consultant

  • Why is the property being sold?
  • How long has it been on the market and what level of interest has there been?
  • What is its Rateable Valuation?
  • How much are the rates?
  • What have nearby properties sold for recently?
  • What are the neighbours like?
  • What facilities and schools are in the area?
  • Is the house north facing? When does it get the sun?
  • What is the prevailing wind direction? Is it sheltered?
  • Is it noisy - traffic, trains?
  • Any flooding or erosion problems?
  • Any local development plans? Zoning restrictions? Type of title?
  • Any covenants or easements?
  • Any protection orders over trees or buildings?
  • Where are the boundaries?
  • Is it suitable to renovate?
  • Could the section be subdivided?
  • Does the home need any repair work?
  • Have there been recent alterations? If so, do they have consents?
  • Has it been re-piled, re-plumbed, re-wired? If so, when?
  • What heating and insulation does it have?
  • Ask what chattels are included in the price - for example; curtains, carpets, light fittings, whiteware.

Things to Check
You also need to establish that the home is in good order. If it is a home that you would like to buy, then a building report will provide some answers, but in the meantime do some checking yourself.

General Condition of the Home

  • Uneven or moving floors could mean problems with piles.
  • Check for woodwork rot and borer holes.
  • Stains, mould, bulges and cracks in walls or ceilings could indicate leaks or a sinking home.
  • Fresh paint and plaster could be a cover up.
  • Sticking or crooked windows and doors could mean a home is moving.
  • Check seals are not perished on aluminium windows.
  • Check under the house for dampness, leaks, borer, pests, gaps in floorboards, cracks in foundations, rotten or sinking piles. Good ventilation will keep the area dry.
  • Check the roof for leaks, holes, sagging, or cracks in tiling.
  • Good natural light and airflow is important, check that skylights open.

Safety, Security and Fire Prevention

  • Check for well-lit access, good street lighting, that fire exits and escapes are in good order, and that smoke detectors and security systems are working.
  • Check that exterior locks work, windows fasten and that decks have secure railings.
  • Turn on all gas outlets to check the flow, are the flames strong? Gas fires must be vented to prevent condensation.
  • Check all electrical fittings, switches and sockets for damage and faulty wiring.
  • Check meter box for old or worn electrical wiring.
  • Does the fireplace work? (Black stains above the fire can mean it doesn’t work well.)
  • Is the chimney old or cracked? Does it have a permit?
  • Test central heating to see that it is working. Are there outlets in most rooms and several controls? Check that fans vent outside, if not they can cause fires.
  • Is there adequate insulation.

Fittings and Chattels

  • What is included in the sale - carpet, curtains, lights, heaters, dishwasher?
  • Are they in good order?
  • Check under furniture for worn or stained patches.
  • Check the TV aerial and reception.
  • Are there adequate power points, lights, and phone sockets?
  • Check that the oven, hobs, dishwasher and range hood work.

Kitchen, Bathroom and Bedrooms

  • Cupboards and wardrobes
  • Is there adequate storage.
  • Check that cupboards open and shut.
  • Check for mould or damp smells.
  • Bath, shower, hand basin
  • Check water pressure and for signs of mildew, leaks, and rotting surrounds.
  • Ensure taps work, test the water pressure, and check the hot water system.
  • Check that the toilet flushes strongly and that bowl and cistern are not cracked and stained.

Outside areas

  • Check walls for rotten or broken boards, cracks in plaster.
  • Check for peeling paint and plaster and also new work to make sure it’s not a cover-up.
  • Check the spouting, gutters and flashing for rust, holes, cracks, gaps and that windows and doors are flashed or sealed to prevent leaks.
  • Check the condition of sheds, garages and decks and whether they have permits.
  • Check banks for erosion and check the condition of retaining walls.
  • Ensure that fences are in the right place, on boundaries. (If you are unsure get a plan from council or have a survey done.)
  • Drainage and flooding
  • Check storm water drains, whether ground is boggy and whether any nearby streams flood.
  • Access and driveways
  • Check condition of steps, paths and drives.
  • If access is shared, investigate any ongoing issues, complaints or problems and check who pays for maintenance.
  • Other
  • Check that there’s a washing line.
  • Check that fences and railings are in good order.
  • Look under and behind big pot plants, they may be concealing something.
  • Noises and smells
  • Check for noises from traffic, trains, planes, neighbours and nearby industry, and check for smells from industry, waterways, and garbage disposal areas.

Getting Serious

When you have established that you may wish to buy a home, then more detailed checking is in order. Some of these checks can be carried out by your lawyer, depending on the conditions you impose in the sale agreement, but you should also look into the following:

Contact the Council
Ask your local and regional councils about the area and future development plans.

Talk to town planners, check out the district or resource plan which set out rules for development in that area, plus zoning and building heights.

You can also get drainage and building plans and copies of permits.

Apply for a LIM Report
To obtain a Land Information Memorandum from your local council you will need to supply a copy of the title for the property. There is a charge for obtaining the report which will include information on drainage, roading, flooding, erosion, consents, etc.

Get a Building Consultant / Engineers Report
Get a building consultant’s report on any buildings/structures on the property. If there are any problems, ask them to give you an indication of what it might cost to fix the problem. Depending on the property you may also like to get an engineers report on other structural / land issues or concerns.

Check the Title
The Certificate of Title will include details of any restrictions that could affect your purchase. Your Allens real estate consultant may have a copy of this document.

Get an Independent Evaluation
An independent valuation will contain detailed information about the property, and determine a property’s current market value. This document is often required to secure a home loan. It may be worthwhile to ask for a short report if you are not certain you will buy the home.)

 

The Purchase

You will buy your home by offer and negotiation, auction or tender using a standard sale and purchase agreement created by the Real Estate Institute and the Auckland District Law Society. You may want to get a copy from your Allens Real Estate Consultant to familiarise yourself with the details. The agreement covers legal responsibilities and the consequences if settlement is late, plus it allows you to insert conditions, amounts and several dates.

Buying by Offer and Negotiation

Making an Offer
When you find the property you want to buy, your Allens real estate consultant can help you negotiate the price, work out the terms of sale and prepare the contract.There are two types of offers:

An Unconditional Offer
This is a 100% guaranteed offer to purchase the property without any further considerations. To make an unconditional offer you must be very sure of your finance. Once the offer is accepted by the vendor you are legally obliged to go through with the sale. Similarly, if you make a successful bid at an auction, you have committed to signing an unconditional contract and paying the deposit at the end of the auction.

A Conditional Offer
A conditional offer is also a binding contract, provided that certain conditions are satisfied by certain dates (eg, LIM reports, finance arranged, valuations supplied.) Don’t sign you sale and purchase agreement until you are satisfied with the conditions. Once these conditions are met, the offer becomes unconditional and the sale will go ahead.

The Offer
Your offer to purchase a home will be made with a sale and purchase agreement with several key dates included:Finance date: The date that your finance needs to be confirmed.Settlement date: The date that you take possession of the home.Offer expiry date: We suggest that you include a date that your offer will expire to discourage the seller from holding onto your offer while waiting for a better one.

You should discuss the details of your offer with your solicitor or legal advisor before signing.

The document will then be presented to the vendor who may counter offer, sign it and return it to you. This process may be repeated until you arrive at a figure with which you are both comfortable. By making your offer subject to conditions, you have time to check that you are happy with the proposed deal or you can renegotiate the offer. For example, if the price is lower you might be happy to carry out necessary repairs. If you make an unconditional offer you need to be 100% certain that you want the property and have finance arranged. You can be sued if you break a contract.

Some common conditions that buyers add to agreements are:
  • Finance - to allow time to finalise loan arrangements.
  • Valuation report - to enable you to check the market price.
  • LIM report - to check the Council’s details on the property.
  • Building consultant’s report - to check that the home is sound.
  • Engineer’s report - to check structural or land issues.
  • Repairs the vendor has agreed to do.
  • Items the vendor has agreed to leave.
  • The conditions must state that the outcome must be satisfactory to you.
  • Sellers sometimes make conditions, the most usual being that if they get a better offer they can give you a deadline to make your offer unconditional (this is also called a Cash-Out Clause.)

Multiple Offers
If a real estate company are instructed to draw up a new offer on a property while still negotiating another offer (with no agreement having been reached), the real estate company/consultant will cease all negotiations and name a time at the office for all offers to be negotiated. This eliminates any unfairness, and allows the vendor to be presented with all offers at the same time. All purchasers are then given equal opportunity to present their offers.

The Deposit
If your offer is accepted, a deposit is normally due to the Trust Account of the Real Estate Company handling the transaction within 3 working days of being due. The deposit may be payable on signing, on the agreement becoming unconditional or on a set date - the details of the deposit are stated on the agreement.

Buying at Auction
Traditionally auctions have been used as a sale method when properties are unusual, hard to value, have special features or need to be sold by a set date. Auctions are an excellent way of focusing the attention of potential buyers. Purchases made at auction are unconditional so you need to be certain that you have everything, especially financial arrangements in place. Don’t take any short-cuts just because there is an auction looming.

Before the auction you need to:
  • Register as a buyer.
  • Ask your lawyer to do necessary title checks.
  • Get a copy of the auction contract.
  • Arrange your finance.
  • Get a valuation and any other reports you feel are necessary.
  • Decide on your top price and stick to it - this is vital.

Homes are only sold at auction when a bid is received that is higher than the reserve price set by the seller. The buyer pays a deposit and the balance is due on settlement day which is usually 28 days later - though this can be negotiated. When the reserve is not reached the home is passed in, however may sell by negotiation immediately after the auction. The highest bidder has the first chance to negotiate at which time conditions can be added to the contact.

It’s always a good idea to attend a few auctions before you actually participate in one, so that you can see how they work. Ask your Allens Sales Consultant for information about our next auction day.

Buying by Tender
When you buy a home by tender you make a written bid for the property which needs to be your best offer. The seller views all of the bids at one time, either selecting the most favourable offer, negotiating with the person who made the highest offer, or rejecting all offers. (You have no opportunity to find out the amounts of other offers.)

How to buy by tender:
  • Register your interest with the agent.
  • Get a copy of the tender document.
  • Arrange to have your lawyer prepare a written offer.
  • Get a valuation and various reports so that you know the market value.

If your offer is accepted you have then committed to buying the home by a set date and to meet all conditions.

Tenders are usually arranged through real estate consultants. If a tender is ‘closed’ the vendor won’t consider offers before the tender closing date. Often, however, the vendor will look at other offers and, in these cases, the words ‘if not sold prior’ are included in the marketing of the property.

When an early offer is made it is usual for the agent to invite all interested parties to make offers. If you are interested in a home being offered for sale by tender, register your interest early.

Words of Advice for Home Buyers:

  • Don’t feel pressured into making an offer, or rushing into a purchase.
  • Feel free to go back to look at the property again, and take a friend or family member with you for advice.
  • You can arrange with your real estate consultant to go back to the property at different times of the day to check the sun, traffic conditions and any other such issues.
  • Don’t sign any contract that you don’t fully understand.
  • Seek professional advice if required.

 

Your New Home

At this point you will have made an offer that has been accepted. However, the sale is not yet complete, and your lawyer has just begun conveyancing - the process of transferring the property into your name. During this period the conditions that you have stipulated on the agreement must be met, i.e. finance needs to be arranged ahead of settlement date and checks on the property must be made.

Some Last Minute Reminders

  • You will need to meet with your bank and/or solicitor to discuss the signing of any necessary legal documentation.
  • Ensure that your funds are transferred as early as possible on settlement day, as the purchase will not be authorised until the Vendor’s Solicitor has received the funds from your Solicitor, and the necessary documents have been exchanged.
  • You are legally entitled to a final inspection of your new property prior to settlement, which your consultant will arrange with you.
  • Liaise with your consultant for confirmation of settlement
  • Remember that upon settlement you will be expected to contribute a portion of the rates.
  • You may wish to ask your Allens Consultant for the forwarding address and contact number of the former owners to redirect any mail that comes for them.
  • Arrange and/or update your House and Contents Insurance.
  • Arrange for the transfer of any services (eg telephone, power, gas, SkyTV, email provider, newspaper/other subscriptions). It is also a good idea to change your address at your local postal centre.
  • If you are currently tenanting a property, you will need to give your landlord the required (written) notice. After your final property inspection, apply to the Bond Centre to get your bond back with your Bond Refund Form.
  • Notify friends, family, and business contacts of your change of address, and leave your forwarding address and contact details at your old address.
  • Arrange furniture removal or truck/trailer hire.

Settlement
Your lawyer will need to carry out the following tasks to safeguard you against hidden costs and to complete the sale.Before Settlement:

  • Obtain a guaranteed title search and check ownership restrictions.
  • Check the LIM for items like consents, rates owing and other problems.
  • Check local authority plans.
  • Check that the conditions in your agreement are met.
  • Prepare mortgage documents and explain them to you.
  • Check that the property is insured.
  • Arrange with you and your bank to pay your share of the purchase price.On Settlement Day:
  • Obtain the title from the vendor’s lawyer.
  • Deal with sale-related legal papers.
  • Pay the vendor’s lawyer for the property.
  • Arrange for you to get the keys
    (If you purchased a property through Allens, we will organise this for you.)After Settlement:
  • Provide you with a settlement statement with the purchase details.
  • Register the new mortgage and transfer of title with the Land Information Office.
  • Provide you with a copy of the title showing you as the new owner.
  • Send the title, mortgage and certificate of insurance to your lender.

Protecting your New Asset

You should take out insurance on your home, contents and your loan. We recommend that you get quotes from two or three insurance companies. Check the details of each policy and have the company explain anything that you don’t understand.

House Insurance
This covers loss and accidental damage from fire, water, burglary and natural disasters and will be a condition of your home loan. The two main types are replacement cover, which will enable you to replace your home with one of a similar size or standard regardless of cost, and indemnity cover which is cheaper, but won’t cover the full cost of rebuilding if your home is damaged.

Contents Insurance
This covers items in the house such as furniture, clothing and jewellery and is usually less expensive if it is taken out along with your house insurance policy.

Insuring your Loan
There are three ways that you can ensure your loan repayments will be made if you are unable to continue payments:Loan Insurance: Repays your loan if you die or makes payments in the event you suffer an illness, an accident or redundancy.Income Insurance: Provides an income if you are unable to work due to being disabled by illness or accident. Life Insurance: Pays a lump sum if you die. Many policies include an early pay out if you are terminally ill and some cover critical illnesses.

Making or Updating a Will /Enduring Power of Attorney
Now is an ideal time to make or update your will. Discuss this with your lawyer when you organise the purchase of your home as it is common for law firms to write free wills. You may wish to enquire about the possibility of appointing a power of attorney at this time also.

Congratulations
Relax and enjoy your new property.







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