AA Insurance Location, Location, Location NZ: As Hamilton paramedic Sonya prepares to buy her first home, she turns to AA Insurance expert Tom for advice on navigating technical aspects such as LIM reports, building inspections, and insurance.
When Sonya, a paramedic from Hamilton, asked AA Insurance Location, Location, Location NZ to help her find a first home, she hadn’t considered some of the more technical aspects of buying. Sonya had heard of LIMs, titles, and building reports, but needed more information turning to AA Insurance’s Tom for assistance.
Like many first-time buyers, Sonya’s preference is a new build in a safe, quiet area of the city. Hosts Jayne Kiely and Paul Glover were tasked with finding Sonya the perfect home that is healthy on the inside and out. “Something that's dry and warm is definitely preferable for me,” Sonya tells Tom.
Purchasing a recently built home can also provide some peace of mind that the property could require less maintenance.
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Be informed by doing due diligence
A new build has less wear and tear than an older property, but it’s still important to do your “due diligence” checks before buying any home. Due diligence can include getting a building report, understanding the ‘LIM’ and ‘title’, and making sure the property can be insured. In other words, being informed.
As Tom notes, even newly constructed homes can have issues. "One of the things that you definitely need to consider is getting a builder's report," says Tom.
“Get someone in to look at the building who is an expert and can tell you: is it built correctly? What's the materials they used? [And] making sure it’s dry and safe,” he tells Sonya. The report can help identify any potential unseen issues with the home.
LIMs and titles: what to check when buying a home
During her house-buying journey, Sonya had questions about LIM reports. “I’ve heard of LIM reports, [but] what are they about?,” she asks Tom in Episode two.
Tom explains that LIM stands for Land Information Memorandum. It’s one of the documents about a property held by the local council. A LIM can help you understand important features of the land and building and any building or resource consents that have been issued for the property.
“It’s really important that you discuss the LIM report with your lawyer,” Tom adds. “They will flag anything you need to be aware of [in the LIM]”.
LIM reports also show past consents issued for the property, giving a fuller picture of the property’s history and work that has been done to it. Your lawyer will check if the work has been signed off by the council.
Another document that comes up in the home buying process is the title. "Title is the legal document that tells you what type of land you're buying," says Tom. “You need to make sure that someone on your behalf is looking at that for you, like your lawyer, and just flagging anything you need to consider.”
Insurance
New builds still carry risk you’ll want to be insured against. It’s important to talk to your insurer prior to buying.
“If you find that dream property and you think you're going to put in an offer, check with your insurer. They will be able to tell you about the cover they can provide, so you know the considerations beforehand,” says Tom.
Final Thoughts: Homework pays off
Whether you’re buying your first home like Sonya, or simply thinking of upgrading, new builds can be an attractive option. Their modern appeal and lower maintenance needs can be appealing, but it’s important to go in fully informed. Talk to your lawyer, get that builder’s report, and make sure you’re clear on your insurance coverage before buying.
For Sonya, this journey into home ownership has been a learning experience. “I’m a novice at this. First time buying a home and first time insuring a home as well,” she tells Tom. But with the right guidance, she's feeling more confident about the steps ahead.
Finally, if you’re buying in an area you haven’t lived in before, start by joining local community groups online to see what people who live there say about the area.
You can watch Sonya’s episode of AA Insurance Location, Location, Location NZ on TVNZ+
New episodes of AA Insurance Location, Location, Location NZ air Sundays 7.30pm on TVNZ 1 and TVNZ+
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