Most of us would love to live in a mansion on the waterfront. The reality is that we have to make compromises when shopping for a home especially if we’re first home buyers. Finding a home you can really afford requires a lot more than simply visiting Open Homes.
Listen to the bank: Banks can’t by law lend to you if the repayments aren’t affordable in your situation. Find out from the bank or through a mortgage broker how much you can borrow then start shopping within that price bracket.
Set up a search: Once you know how much you can borrow set up a search on OneRoof for houses for sale in your price range, but a wider geographical area than you want ideally. Don’t specify the number of bedrooms. You might find a property that has spaces such as second lounges, dining rooms, rumpus rooms, or even laundries that with a bid of clever reorganisation or even a simple wall could turn into extra bedrooms. Modern, dry internal garages house teenagers all over the country.
Maximise your KiwiSaver and use other government schemes. Save like crazy in the period leading up to your purchase. It could help you get a larger KiwiSaver HomeStart grant if you qualify. There are other schemes such as the Welcome Home Loan and also shared ownership homes that can make it easier to get a foot in the door. You may also want to consider buying new, which means you can get double the grant from KiwiSaver.
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Simplify your lifestyle: Tiny home living is all the rage in New Zealand. Many Kiwis are sick of the stress that comes with too many belongings and are getting joy out of downsizing. Think about clever storage options that could allow you to live in a smaller space.
Pick your agent’s brain: Talk to agents. Tell them what you’re looking for and ask their opinion. Sometimes they may know of a property that could suit your needs but falls outside the scope of what you’re looking for.
Accept that it’s the first step on the ladder. If this is your first or second home it’s probably not your forever home. Be thankful and up work towards your ultimate dream from there.
Ugly can be beautiful. Just look at George Clark’s Ugly House to Lovely House programme on TV. Ugly houses are often cheaper, but can be transformed with imagination. At the same time you’re building capital to make the next move easier.
Move to a cheaper centre. Kiwis who work from home or have easily transportable jobs such as teaching or police officers can sometimes get a foot on the property ladder in cheaper regional towns and cities such as Whangarei, Rotorua, Ashburton or Invercargill to name a few.
Don’t rule out apartments, flats and other housing options. Never say never when it comes to living in an apartment, townhouse, flat or semi-detached home. Every town and suburb has some that are large enough to house a big family and may have a garage and outdoor space.
Finally, keep looking, keep your dreams alive, keep checking your search, and ultimately be flexible in what you want. The perfect affordable home could just surprise you.
