The topic of house affordability is often in the news and if you believe everything you hear or read, you may think you’ll never be able to buy your own home. But wait!
Unlike in the major cities, many Hawke’s Bay homes are still priced within reach of most of us, making home ownership a reality rather than a dream.
Home ownership is an important and key element in most people’s financial plans. Whether you are two years or two months away from buying your first home, the time to start planning is now.
The first steps to getting your home:
- The first step is to decide you actually are serious!
- Then, work out what house price point you are comfortable with and the deposit you will need to secure it.
- Create a savings plan to reach that deposit goal, and stick to it.
A deposit is often a minimum of 10-20% of the house price. For example, if you are looking at a $350,000 home, you will need a minimum of $35,000 as a deposit. Just make sure that you can afford the mortgage repayments and have enough for maintenance and living costs now, and in the future. See more on calculating how much deposit you need here.
Then, tick all the boxes for your mortgage.
If you are in KiwiSaver, you should be able to use your fund towards your deposit. There are also first-time home buyer grants available. It’s best to talk to a mortgage adviser about the different options. If you don’t get what you want, shop around.
And finally, get a good lawyer, essential to making sure your house purchase is done correctly and legally.
Timing is also a factor to consider when you are looking to buy a house.
In this buoyant market, preparation is king and houses are selling fast. Give yourself enough time to gather your deposit, sort out a pre-approval of your mortgage, get a builder’s report etc.
Once you’ve got your finances sorted, you’re ready for those open homes!
If you’d like advice on how best to plan for a house purchase, call us at Cole Murray and we’ll make a plan together.
We have mortgage and financial experts who can help you through the process towards achieving your home ownership dream. If you need a hand, give us a call.
It’s a service that comes at no cost to you*, and puts your interests first – learn more here.
‘Dollars and Sense’ is a monthly column Mike writes for the Hastings Leader and Napier Courier. This column is general in nature and should not be regarded as personalised financial advice. A disclosure statement is available on request and free of charge.
* Our standard Mortgage Advisory service is provided free of charge as we are remunerated (paid) by the banks, but we also provide specialised services and advice for non-conforming, credit-impaired, business and complex cases. After our free initial no-obligation consultation, we will advise you if a fee may need to be charged before we undertake any work. In many cases we may find a simple solution for you.
Photo Credit: Hawke’s Bay Tourism